Show Summary Details
Global Political Economy

Global Political Economy (6th edn)

John Ravenhill
Page of

Printed from Oxford Politics Trove. Under the terms of the licence agreement, an individual user may print out a single article for personal use (for details see Privacy Policy and Legal Notice).

date: 27 June 2022

p. 1757. The Globalization of Productionlocked

p. 1757. The Globalization of Productionlocked

  • Eric Thun

Abstract

This chapter addresses the globalization of production. Although companies have been investing abroad for centuries, the most recent era of globalization has created an unprecedented range of possibilities for global firms to reorganize and relocate their activities. The chapter analyses how advances in transportation and technology allow a firm to divide up a global value chain — the sequence of activities that lead to the production of a particular good or service — and how these decisions create new opportunities and challenges for both companies and the societies within which they operate. It first reviews the rise of global production and the forces that have led to dramatic increases in foreign direct investment (FDI) and outsourcing. The central questions for any firm involved in global production involves how to govern the value chain and where to locate different activities. The chapter then provides a framework for understanding these issues and the implications of the various choices. It also applies these concepts to the case of East Asia, particularly China.

You do not currently have access to this chapter

Sign in

Please sign in to access the full content.

Subscribe

Access to the full content requires a subscription