GGR325H5 Lecture 8: GGR325 Lec 8 Mar 3
Document Summary
Ggr325 lecture 8 mar 4 - clothing and cars. Continuing relative (sometimes absolute) decline of developed country producers (only us & italy retain export %) Geographical shift of production to certain developing countries, most notably east. But truer for garments than textiles (more capital intensive) Figure 10. 6 variations in production characteristics betwen major components of the textiles- clothing production circuit. Fma impact on world trade immense: << production in developing countries, evasion actions. Switching to different types of products in the same country. Re-location in developing countries that haven"t met their quotas. 3 broad categories: producers basic goods for large markets using economies of scale (lower costs, prices competitive, operators of small workshops. ("sweatshops" in large cities) ~ short term contractors producing lower-quality garments. Organize entries systems of clothing production (retail chains and buying groups) Car parts of major companies are often outsourced. Most significant events of the last few decades: production in japan.
