pkpatriotic
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In global capitalism, economic activity is not only international in scope, it is also global in organization. Internationalization refers to the geographic spread of economic activities across national boundaries. As such, it is not a new phenomenon. Indeed, it has been a prominent feature of the world economy since at least the 17th century when colonial empires began to carve up the globe in search of raw materials and new markets for their manufactured exports. Globalization is much more recent than internationalization because it implies functional integration between internationally dispersed activities.
Globalization has been promoted by industrial and commercial firms alike, which have established two distinct types of international economic networks that have been called producer driven and buyer-driven global commodity chains, respectively. A commodity chain refers to the whole range of activities involved in the design, production, and marketing of a product .
Producer-driven commodity chains are those in which large, usually transnational, manufacturers play the central roles in coordinating production networks (including their backward and forward linkages). This is characteristic of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors, and heavy machinery.
Buyer-driven commodity chains, on the other hand, refer to those industries in which large retailers, marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in the third world. This pattern of trade-led industrialization has become common in labor-intensive, consumer goods industries such as garments, footwear, toys, handicrafts, and consumer electronics. Tiered networks of Third World contractors that make finished goods for foreign buyers carry out production. Large retailers or marketers that order the goods supply the specifications.
Big Buyers and Global Sourcing
A fundamental restructuring is under way in the retail sector in the US and other developed economies. The global retailing industry is dominated by large organizations that are moving toward greater specialization by product (the rise of specialty stores that sell only one item, such as clothes, shoes, or office supplies) and price (the growth of high-volume, low-cost discount chains).
Furthermore, the process of filling the distribution pipeline is leading these retailers to develop strong ties with global suppliers, particularly in low-cost countries.
Nowhere are these changes more visible than in apparel, which is the top merchandise category for most consumer goods retailers.
To Be Continue.......
Globalization has been promoted by industrial and commercial firms alike, which have established two distinct types of international economic networks that have been called producer driven and buyer-driven global commodity chains, respectively. A commodity chain refers to the whole range of activities involved in the design, production, and marketing of a product .
Producer-driven commodity chains are those in which large, usually transnational, manufacturers play the central roles in coordinating production networks (including their backward and forward linkages). This is characteristic of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors, and heavy machinery.
Buyer-driven commodity chains, on the other hand, refer to those industries in which large retailers, marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in the third world. This pattern of trade-led industrialization has become common in labor-intensive, consumer goods industries such as garments, footwear, toys, handicrafts, and consumer electronics. Tiered networks of Third World contractors that make finished goods for foreign buyers carry out production. Large retailers or marketers that order the goods supply the specifications.
Big Buyers and Global Sourcing
A fundamental restructuring is under way in the retail sector in the US and other developed economies. The global retailing industry is dominated by large organizations that are moving toward greater specialization by product (the rise of specialty stores that sell only one item, such as clothes, shoes, or office supplies) and price (the growth of high-volume, low-cost discount chains).
Furthermore, the process of filling the distribution pipeline is leading these retailers to develop strong ties with global suppliers, particularly in low-cost countries.
Nowhere are these changes more visible than in apparel, which is the top merchandise category for most consumer goods retailers.
To Be Continue.......
