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Lecture 3

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Carleton University
GEOG 2200
John Milton

Week 3 Lecture 1 Sept 27 2012 Return to Fordism and Post-Fordism for a moment • Fordism and post-Fordism (neo-Fordith) represent the two regimes of accumulation that dominated the 20 century • Fordism – associated with organized capitalism; post-Fordism – associated with disorganized capitalism And back to the new geography of manufacturing • Changing geography of manufacturing was based upon three areas o New technolgoies in transport and communications o Changing patterns of demand consumption o The changing global regulatory environment • Results in a tri-polar world: core, semi-peripheral, and peripheral countries o Core with high technology creating jobs, has reduction sin employment in manufacturing o Semi-peripheral has increase in manufacturing employment, increases in productivity and in overall improvement in compettiiveness in the international economy o Peripheral – new technologies are too expensive • Changes also taking place with industrial sectors • Most important probably the globalization of business activity through the restructuring of the corporate world. Two outcomes of this o Concentration – involves elimination of small, weak firms in particular spheres of economic activity o Centralization – involves the merging of the resultant large enterprises from different spheres of economic activity to form giant “conglomerate” companies providing a diverse range of activities and products o Capitalism eventually has to be grounded – material, factory, etc • Another way to externalize has been highlighted when discussing the MNC – various forms of arrangements with other firms o Include joint ventures in the licensing or contracting of technology, and in strategic alliances involving design partnetships, collaborations, etc • Clothing industry provides a dramatic example of how production networks have changed over time o Textile industry began in Britain o The industry gradually/eventually moves to Asia o i.e. China, India, Pakistan, Bangladesh o United States still pretty productive in textile industry • Why? o Costs – much cheaper to employ in Asia ($1/hour in China vs $10/hour in USA) • 1960 – less than 7% of clothing imported, 2007— 90% is imported • globalization of production has resulted in complex set of commodity chains. Major clothing companies have most of their product
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