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(p. 174) 7. The Globalization of Production 

(p. 174) 7. The Globalization of Production
Chapter:
(p. 174) 7. The Globalization of Production
Author(s):

Eric Thun

DOI:
10.1093/hepl/9780198737469.003.0007
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date: 20 May 2019

This chapter examines 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 considers the rise of global production and the forces that have led to dramatic increases in foreign direct investment and outsourcing. It then describes two dimensions of a global value chain: governance (how to coordinate activities) and location (where to locate each activity). It also explores trends in the globalization of production by focusing on the case of China.

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