New international division of labour Flashcards
what did old factories used to be near to make it easy to transport goods away
canals
what was adam smith’s wealth of nations about
specialisation (differentiates between dol of agricultural and industry),
division of labour,
conceptualising society and space
what do mncs do to the division of labour
take it on a global scale
what were the three phases of the old division of labour
mercantilism (skilled labour wage labour, serfdom forced or slave), imperialism (wage labour factory craft, slave labour waged labour), periphery industrialisation (managerial highly skilled skilled manual, agriculture)
features of the new division of labour
increase in FDI within core and,
FDI from core to key periphery location,
MNCs fragment production process (where manufacturing organised on world scale to take advantage of cheap labour in periphery)
what are some changes that have occurred due to the new division of labour in terms of horizontal and vertical
growth in horizontal division of labour (more jobs in different places),
new vertical division of labour (decentralisation of part of production process facilitated by technological change)
what does NIDL
new international division of labour
conditions necessary for nidl
available worldwide reservoir of cheap disposable labour,
fragmented labour process (leading to deskilling and sub-divisions in the production process),
advances in transport/technology (enable MNCs to be footloose and produce in any part of the world)
consequences of NIDL
wide range of production in periphery,
export-oriented economies,
newly industrialising countries
critique of Frobel et al
capitalist logic (devalues other factors), abstract thesis (not empirical), spatial impacts assumed uniform, too global (avoids specific industries), effects of global south not included (countries developing independently of MNCs)
foreign direct investment FDI d
strategy in which the firm establishes a physical presence abroad by acquiring productive assets, such as capital, technology, labour, land, plant and equipment
what is it called when there is fdi but it is <100% ownership
international collaborative venture
what are the two main forms of fdi
greenfield investment,
acquisition or merger with existing firm
what does gpn stand for
global production network
what is the core of a gpn
circuit of interconnected functions, operations and transactions through which a specific commodity, good or service is produced, distributed and consumed
are gpns confined to physical commodities
no they are not confined,
non physical products like financial services are produced within the global production network
what is an especially significant category of services within gpns
logistics,
essential role is to intermediate between buyers and sellers at all stages of production circuit
financialisation d
increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies
what is a production circuit
diagram which shows flows of materials and information as well as the linkages between different things
what is the shareholder value revolution
beginning in the 1980s shifted power in corporate governance from managers to shareholders
who are the five main actors in the global economy
tncs, states, labour, consumers, civil society organisations
multinational corporations consists of _____ and ______ functions
internalised,
externalised,
whether stuff performed in house or subcontracted to another conpany
all the elements in a gpn are regulated within some kind of political structure, whose basic unit is the ______ _____
national state
what is one of the most fundamental differences between labour and transnational capital
labour is more place bound and generally far less geographically mobile than capital,
also have knowledge to make products
what are producer goods or services
goods or services that are purchased by firms within a production circuit for further transformation
what are consumer goods or services
final demand goods purchased by individuals and households
what qualities of consumption do advertising, retailing and media industries attempt to manipulate
symbolic
what does gsm stand for
global social movements
what are global social movements
networks that collaborate across borders to advance thematically similar agendas throughout the world and in doing so have become powerful actors in global governance
what does gcsos stand for
global civil society organisations
what do gcsos include
ngos like oxfam and greenpeace
specialised clusters d
tendency for firms in the same, or closely related, economic activities to locate in the same places to form what are sometimes termed ‘industrial districts’
generalised clusters d
reflect the fact that human activities tend to agglomerate to form urban areas
traded interdependencies d
direct transactions between firms in a cluster, spatial proximity is a means of reducing transaction costs
untraded interdependencies d
less tangible benefits of geographical clusters from development of an appropriate pool of labour skills to particular kinds of institutions
what are the two types of interdependence that are a result of geographical clusters
traded interdependencies,
untraded interdependencies
what three important processes does geographical agglomeration facilitate
face to face contact,
social and cultural interaction,
enhancement of knowledge and innovation
what is a good example of fdi
japanese fdi in the uk, nissan factory in the north east of england
what are the various strategies of fdi
purchase of assets,
new investment,
international collaborative venture
advantages and disadvantages purchase of assets fdi
ad - quick entry, local market know how, possible local financing, eliminate competitor,
dis - inherited problems
advantages and disadvantages of new investment fdi
ad - local financial incentive, no inherited problems,
dis - long time to generate sales
what is international collaborative venture fdi and what is one advantage
shared ownership with local or non-local,
ad - shared risk
firms often do a mixture of all three forms of ____ to share the risk
fdi
dubai international capital group acquired british theme park operator _______ group for ____ billion
Tussauds, $1.5
how has the role of the us as a source and destination changed over time
1960s us firms accounted for 2/3 of worldwide fdi,
now us firms account for less than 1/5 of worldwide fdi
how has the share of fdi from developed countries and developing countries changed over time
from 1985 to now,
share of fdi from developed countries decreased and share of fdi for developing countries has risen
there has been a massive increase in the percentage of fdi that is in the _____ sector
services
how has the us semi-conductor industry changed due to globalisation (1)
effect of japanese competition meant us firms had to reduce costs,
relocate labour intensive production to hong kong and se asia,
hong kong initial entry point then to rest of asia
how has the us semi-conductor industry changed due to organisation (2)
r+d remain in core (usa),
wafers fabricated in core then air-freighted to asia,
air freighted to markets,
re-export finished goods back to core
how has the us-semi conductor indutry changed due to regional division of labour (3)
hong kong/singapore - new mini core (wafer fabrication),
malaysia thailand concentrate on assembly
what does epz stand for
export processing zones
epz (export processing zones) d
small closely definable areas in which favourable investment and trade conditions are created to attract export-oriented industries, usually foreign-owned
what are some features of epzs (export processing zones)
80% production export led, high supplies of cheap labour, 70-80% jobs female, very low wages < $1 an hour, high labour turnover
example of epz (export processing zone)
usa/mexico border region
sub contractors develop a ‘_____’ international division of loavour
newer
what is there for most manufactured goods
integrated global production network
