Prepared By Prof Alvin So1 SOSC 188 Lecture 14 The Development Project (II): Unravels.

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Presentation transcript:

Prepared By Prof Alvin So1 SOSC 188 Lecture 14 The Development Project (II): Unravels

Prepared By Prof Alvin So2 Divergent Developments The Global Production System

Prepared By Prof Alvin So3 Divergent Developments Widening the gap between the First and Third World - increased technology imports, poor manufactured products, growing deficits & debts Disunity among the Third World nations (the Newly Industrializing Countries NICs) - Export-oriented industrialization The third industrial revolution - light industry, heavy industry, & to information technology labor intensive, capital intensive, information intensive time & space compression (rapid circulation, offshore sites), flexible production

Prepared By Prof Alvin So4 The Global Production System From national production to globally production – High-tech (product design & sales promotion) at the core Labor-intensive assembly process at the periphery Export processing zones attract foreign investment Low wages, tax holidays, minimum tariffs Lack of regulations on safety, work day, union process raw materials, Assemble products Products for exports only

Prepared By Prof Alvin So5 Intra-firm transfers for transnationals - Redefine world trades (exports/imports) A new international division of labor (NIDL) – Global sourcing for raw materials, labor, markets The Third World becomes an export platform Out of sight of regulators

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