Q1. The Global Commodity Chain links the Core and Periphery, which explains why and how the consumption orientation of the affluent is related to the human poverty of the poor. Analyze the statement using the following concepts: Conspicuous consumption vs. Comprador consumption Youth as commodity vs. Labour as commodity

8 Cs: 1Commodity Chain (GCC) -International Division of Labour (IDL) 2Core’s Consumption & Labour Commodification are two sides of the same coin. 3Classes (in Core & in Periphery) 4Consumption Patterns: Conspicuous vs. Comprador 5Commodification: of Core’s youth & of Periphery’s Labour 6Circularity in Core’s youth employment 7Corporation’s surplus extraction 8Child/youth/poorer classes‘labour

1Why do global corporations create Commodity Chains? How does it work? International division of labour (post colonial) Endless accumulation: economic growth to maximize profits Commodification of everything; Global search for surplus extraction Repeated cycles of innovation, change, and expansion

2. Core’s Consumption & Labour Commodification are two sides of the same coin. Global Commodity Chains (GCC) have integrated the global production processes and consumption patterns. World System Theory: GCC links richer consumers in the Core and Periphery IDL links the Core’s capital with Periphery’s working poor.

3. Classes (in Core & Periphery): Consumption patterns of richer classes Core’s endless consumption is imitated by the periphery’s richer classes

Peripheral states: Subcontractors (owner class): Upper income class (global Elites) luxury goods consumer household Educated & skilled workers: Middle income class (White or Blue collar) Children at school Youth at school Poorer classes: Child/youth/women work

4. Consumption Patterns: Conspicuous consumption Comprador consumption

Conspicuous consumers Creation of artificial wants Persuaded to consume endlessly Ads & Peer pressure lure the young Comprador consumers: Not interested in country’s development Consumers ‘Go-between’ class in MNCs’ surplus extraction

5. Circularity in youth employment: Not accidental but designed mass consumerism in post-war Era Commodification of youth in mass advertising Demand for and supply of young service sector workers Consumption ( resulting MNC profits) will be greater in a stable economy

Circularity…(cont’d) Consumerism - Commodification Link is circular Service sector employers: Hire young workers because youth is what sells their product Youth/child often is the real product being sold e.g.: Ads of child/youth in jeans or t-shirts, sneakers or snowboards, soft drinks or CDs

6.Commodification: of Core’s youth & of Periphery’s Labour: Why? Endless accumulation of capital requires endless consumption. MNCs develop strategies that link the Core’s consumers/ youth and the periphery’s surplus labour for extracting endless profits

Core youth Commodified in the Service sector Low-end service work Low in status, value and skill Not “real” work Corporations view youth work as hobby

The company hires “brand representatives”: Not cashiers or clerks Exhibiting the “A&F Look” for the experience at Abercrombie & Fitch stores Selling an experience for customer to experience again and again through the Brand

7. Corporate capital - oligopolistic or monopolistic - extract profit from surplus labour. Core: Capitalist oligopolistic competition allows smart accumulation of profit Self-interest drives costs & profits Peripheries: Corporate monopolistic capitalism by sector – by agri.product, by industry, etc., - works to eliminate competition Corporate mergers aim to extract & transfer surplus (profit) by squeezing those who are not powerful players in the market Unequal exchange

Peripheral states: Human poverty and labour commodity: Lower income and Poorer classes: Households working in production: Working men, children, youth, & women Human poverty is when children must work: Child labor

8. Child/youth/poor class: labour commodity International Labor Organization (ILO) reports: In 2010 Global total of Children (age 5-17): billion 20 mil. more than in 2004 (1.3% increase) In the Developing World (2010): Working children. (age 5-17): 306 mil. Child labour (age 5-17): 215 million Source for 2004: