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New International Divisions of Labour Lecture.docx

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GPHY 101
Anne M C Godlewska

THE NEW DIVISIONS OF LABOUR According to Merk, outsourcing involves manual and administrative labour. Workers in the local core are worried about outsourcing NIDL (New international division of labour) is a key aspect of globalization. Nike: consumer power OIDL - Our current global system is based on an earlier colonial economic system - Global periphery produced raw materials and global core produced finished goods o Colonial systems driven by economical powers o Imposed with economic and military strength - Particular regions specialized in particular economic activities o Different colonies became associated with particular exports o Increased trade and increased integration Core periphery division: Canada is an exception (periphery linked with USA and Britain) - Produces raw materials NIDL - Ongoing relocation of manufacturing operations from the global core to the global periphery - Service sectors too such as call centres - Knowledge-intensive and skill-intensive functions retained by the core Who’s Behind the NIDL - TNCs are driving it (transnational companies) - Corporations that locate/part of division in more than one countries - Initially operated in developed world now expanding to NIC (newly industrialized companies) - Operated by subdividing or subcontracting How does NIDL work? - Locational advantages offered by global periphery - Fierce competition so facilitating travel, taking advantage of economic and political conditions - Advantages: amount of competition, market sizes, cost of labour/resources, poor regulation - Tradeoff w/ security and quality 3 Important Pre-conditions before patterns of relocation 1. Spread of agricultural methods to the
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