Fudging MNEs and GVCs

Question 1

Gereffi (1999, 2005)

Answer 1

Developed the Global Value Chain (GVC) framework. Introduced governance types (e.g. modular, relational, captive) that explain how lead firms structure and control supply chains. Shows how value is unevenly distributed along the chain.

Question 2

Coe & Yeung (2015)

Answer 2

Developed the Global Production Networks (GPN) framework. Introduced ‘strategic coupling’: regional success depends on how local assets align with global firm strategies. Emphasised the multiscalar nature of governance and institutional embeddedness.

Question 3

Dunning (1993)

Answer 3

Created the OLI paradigm (Ownership, Location, Internalisation), explaining why MNEs invest abroad. Helps understand how MNEs choose locations based on institutional and resource-based advantages.

Question 4

Rodrik (2004)

Answer 4

Argued that regions need ‘absorptive capacity’ to benefit from FDI and GVC integration. Emphasised the importance of strong institutions for capturing spillovers from MNEs.

Question 5

Yeung (2015)

Answer 5

Promoted ‘mid-range theory’ to explain how GPNs work in context. Emphasised that governance strategies are shaped by institutional environments and state–firm interactions.

Question 6

Sassen (1991)

Answer 6

Developed the concept of global cities. Argued that cities like London and New York act as command centres in GVCs, concentrating high-value services (finance, law, branding) and influencing GVC governance.

Question 7

Neil Smith (1982)

Answer 7

Introduced the ‘rent gap’ theory. While not GVC-specific, it explains how capital (including MNEs) moves to maximise value, leading to cycles of investment and displacement.

Question 8

Dicken (2011)

Answer 8

Argued that MNEs are central actors in globalisation. Showed that production is globally fragmented but controlled by firms embedded in institutional contexts. Stressed that benefits of MNEs depend on host region governance.

Question 9

Ponte et al. (2023)

Answer 9

Claim that GVCs are ‘constitutive of global inequalities’. Show how governance structures within value chains reproduce uneven development and limit value capture by peripheral regions.

Question 10

Langford (2019)

Answer 10

Studied the Trustea standard in Indian tea production. Demonstrated that bottom-up governance by local actors (firms, NGOs, state) can improve labour standards and create inclusive forms of value chain governance.