GGRA02H3 Lecture : Global Assembly Line

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14 Dec 2011
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From fordism to post-fordism, from spatially-fixed to spatially dispersed assembly line. Global production and supply chains controlled by tnc"s (trans-national. Read crewe"s article on the fashion commodity chain. A good example is philips, the dutch-based electronics tnc: check it out at http://www. philips. com/about/businesses and suppliers/suppliers/index. page. Supply and commodity chains: the network of facilities and distribution capabilities an enterprise uses to: source (or procure) raw materials (chemicals, ores, grains, ) or components. Transform the materials or assemble the components into products. Deliver the products to customers (indirectly through distributors or stores or directly to the purchaser) Comparative locational advantages places, regions and countries that offer cheap labour and land, lax social and environmental regulations, government incentives, export production zones attract companies looking to minimize production costs. Mobility of capital: massive increase in foreign direct investment (fdi) especially in developing countries and in particular in asia.

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