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Flashcards in Global Production Chains (HRACS) Deck (29):
1

What is commodity fetishism?

Economic relationships among the money and commodities exchanged in market trade

2

What is a commodity chain?

Traces the entire trajectory of a product.

Design -> production -> retailing -> consumption.

Each node value is added or profits are generated.

3

What are the two main types of commodity chains?

Producer-driven chains and buyer-driven chains.

4

Whats a producer driven chain?

Murray and Overton, 2005

Trans-national corporations control the mode of production and the overall direction of the chain, e.g Boeing.

High barriers of entry because require capital and technology intensive production and economies of scale.

5

Whats a buyer driven chain?

Murray and Overton, 2005

Manufacturing firms without factories who operate at the centre of a highly flexible and global network of production, distribution and marketing, e.g Nike, Walmart.

Geared toward labour intensive industries where it is important to locate production in lower-wage areas, e.g clothing in Bangladesh.

6

How is a buyer driven chain affected by place?

Sweden has a Mcdonald's like every other country but because Sweden has strict laws on minimum wage the food is very expensive.

7

Why do people spend more money on products than they arguably need to

The main answer is that certain products offer additional value to consumers because they say things about the people who own and display them.

A car is not just a machine to get from point A to point B. Pulling up in a brand new BMW instead of a 15 year old Honda suggests, in a symbolic way, that this person has money and style beyond a simple utilitarian need to get around town.

8

A commodity chain has a beginning and an end is flawed

Lepawsky and Mather (2011)

In Dhaka, all 'electronic-waste' had value and was being bought and sold, assembled, disassembled and reassembled…

9

A commodity chain is characterised by four features.

Murray and Overton, 2005

1) the flows of commodities from each point in the node
2) the utilisation of labour at each point on the node
3) the mode of production at each node
4) the geographic location of the nodes

10

Buyer driven chain Nike example

Nike designs, markets and sells products but they don’t make a single shoe or piece of clothing on their own

11

The role of place in the chain

Coe et al (2008)

Although global production networks or chains are social and cultural phenomena, their configurations and characteristics are shaped by geography and the specific social, political and cultural circumstances in which they exist.

12

Connections between sites along the chain

Leslie and Reimer (1999)

Geography plays a central role in tracing connections between sites along the chain and in revealing the complex implications of consumer actions.

13

Why has a lot of car manufacturing moved from the US and UK to China or Korea?

Cost of labour was cheaper at that time.
Extra cost of shipping cars from China to the US is outweighed by the savings they get from having cheaper labour costs in China or more recently Mexico.

14

Nation states have lost power?

Coe et al. (2008)

It is often argued that nation states have lost power in the age of globalisation, they can in fact exert a powerful influence of global firms and global consumers.

E.g. car making in China

15

The difference between the material value of commodities and their symbolic value.

E.g cost of making Jordans is £10 but can sell for...

Pulling up in a brand new BMW instead of a 15 year old Honda suggests, in a symbolic way, that this person has money and style beyond a simple utilitarian need to get around town.

16

The nature of consumption is changing in the global world

Murray and Overton, 2005

Consumption has come to be understood as far more than a material transaction process.
Items are constituted of symbolic as well as material value and their consumption is tied up with the creation and expression of identities.

17

Brands

Murray and Overton, 2005

‘Brands’ have become increasingly important markers of identity.

Many consumers buy certain products to associate themselves with particular communities and movements

18

Consumers do not straightforwardly draw upon meanings prescribed by retailers and advertisers

Leslie and Reimer (1999)

Consumers do not straightforwardly draw upon meanings prescribed by retailers and advertisers but rather that commodity meanings are often contested and reworked by consumers.

19

Ikea targeting straight consumers

Leslie and Reimer (1999)

Lesbian group called Dikea who resists and subverts these hegemonic images of certain meanings and understandings of the home in adverts.

20

Scrap cars in Detroit

The Economist, 2015

How workers who used to build cars in Detroit and lost their jobs during the financial crisis are now earning money by salvaging and selling scrap metal from those same old cars and abandoned houses and factories in Detroit.

21

Scrap cars in Detroit

The Economist, 2015

22

Ikea targeting straight consumers

Leslie and Reimer (1999

23

Consumers do not straightforwardly draw upon meanings prescribed by retailers and advertisers

Leslie and Reimer (1999)

24

Brands

Murray and Overton, 2005

25

The nature of consumption is changing in the global world

Murray and Overton, 2005

26

Nature of globalisation on global production chains

Coe et al. (2008)

27

Connections between sites along the chain

Leslie and Reimer (1999)

28

A commodity chain has a beginning and an end is flawed

Lepawsky and Mather (2011)

29

References to use...

The Economist, 2015
Leslie and Reimer (1999)
Murray and Overton, 2005
Coe et al. (2008)
Lepawsky and Mather (2011)