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GEOG 121
Debra Pentecost

How we got here from the South Classic international division of Lecture 10 labour International division of labour = the geography of global specialization and production. “Classic” form: colonial countries specialise in manufacturing, colonies in the production of primary goods (natural resources). New International Division of Export-led industrialisation Labour (NIDL) Export oriented manufacturing sector powers the • F. Fröbel, J. Heinrichs and O. Krey, The Global South to development. Possible New International Division of Labour because: (1980). 1. Liberalisation of trade • Increasing emergence of industrialising 2. “Shrinking” of geographical distance by countries in the Global South: the “Newly enabling transportation and communication Industrialised Economies (Countries).” technologies “Four Tigers:” Sinapore, Hong-Kong, 3. Prevalence and willingness of multinational Taiwan, S. Korea corporations to invest 4. Strong states (“development states”) – e.g., Korea and Taiwan Export processing or special The ironies of export economic zones processing zones Small, separated areas dedicated to the enterprise in China production of exports usually by MNCs 1. Production sites are carefully placed. Globalization 1. No export/import duties and the market are hardly free. 2. Tax holidays 2. High proportion of export zone labour is female 3. Repatriation of full profits working long hours for little money (= Marxist 4. Provision of physical infrastructure exploitation). Is this back to the future? 5. Abundant cheap labour The solution: to come up with better alternatives that > 3500 world-wide, > 66m workers, 2006 really are better, then there would be no irony at all. (International Labor Organization) Global corporations: Wal-Mart Global corporations as an example • Seem to offer the possibility of bringing the Lecture 11 world together • But their rationale as institutions depends upon keeping the world apart The Multinational Multinational Corporations Corporation (MNC) and Space • MNCs (or Transnational Corporations, • Almost as old as capitalism itself: British TNCs) are firms “that own, control and coordinate Hudson Bay Co., British East Indian Co., activities in more than one Dutch East Indian Co. country” (Dicken) • Marx predicted growing size of • Growth in numbers: corporations would cause the collapse of capitalism. 1970 ≈7,000; 2006 ≈ 63,000 • Growth in size: Three advantages from the tactical 2) Dodging corporate Taxes: -Amazon, Google, and use of space: 1) Cheap and pliant Starbucks paid almost no corporate taxes in the UK labour: wage costs for factory workers in Indonesia, despite making billions of dollars over a sustained Thailand, and the Philippines are 2.5-5% of the cost period. -Starbucks paid no tax in14 out of 15 years of US workers.
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