Economics 2150A/B Study Guide - Quiz Guide: Value Chain, Modular Form, Tacit Knowledge

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Colin Denniston

Document Summary

Dynamics of global value chains: value chain governance and patterns are not associated with particular industries. The dual role of services in gpns: value cannot only be created by manufacturing, but also knowledge aspects: r&d, design, brand creation, advertising, finance packages, service package, or upgrade packages. Logistics: essential role is to intermediate between buyers and sellers at all stages of the production circuit: not only physical but also transfer of information. Financialization: every stage in a gpn has to be financed, financers have a lot of influence and power in lubricating production and shaping through their evaluative decisions. Financialization: the increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies: non-financial firms driven by financial motives. Individual production circuits themselves are enmeshed in broader production networks of inter- and intra-firm relationships.