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Globalization and divergent paths of industrial development: mobile phone manufacturing in china, japan, south korea, and taiwan Colby Judd.

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Presentation on theme: "Globalization and divergent paths of industrial development: mobile phone manufacturing in china, japan, south korea, and taiwan Colby Judd."— Presentation transcript:

1 Globalization and divergent paths of industrial development: mobile phone manufacturing in china, japan, south korea, and taiwan Colby Judd

2 Global Value Chain (GVC)
How the Development of Mobile Phone Manufacturing in East Asia led to different developmental paths of Industrialization and Value Chain Placement.

3 Two Perspectives on Globalization
Convergence Perspective: More globalization will lead to the adoption of similar economic practices, following a neo-liberal view, and thus similar paths to economic development Divergence Perspective: Local economies will have greater influence on globalized economic development. Fragmentation and dispersion will occur at higher rates to narrow down on the value chain.

4 Globalism pre-recession
Demonstrated Examples of Fragmentation Due to link between National and Global Economies Production being split into different value-added stages Easier for competition to enter the market Consider talking about: China Mobile China Unicom China Telecom

5 Post-Recession Changes
Consolidation in Large Emerging Economies Global Lead Firms have more power in dictating developmental path Developing economies becoming end- product economies More favorable to expansion

6 Consider talking about:
Domestics sales Export volume Development trend Pricing

7 Korea Late to Production Government Supported Technology
Protected Domestic Market Adapted to GSM License (Global Standard) OBM (Original Brand Manufacturer) Global Branding

8 Taiwan Relied on Specialized Manufacturing to Increase Globalization
Small component producers before becoming OEM manufacturers for large foreign companies A few failed attempts at becoming a design manufacturer have emerged They place lots of research and development to maintain edge Global Manufacturing

9 Japan Early Adopter and Large Conglomerates in Electronics
Strong Domestic Market Used to be one of the largest global suppliers. Now well below 1% of Market Share Refusal to give up PDC Technology Withdrew from China due to Competition Early Adopter of New Technology Local Branding and Local Manufacturing

10 China Large, Diversified Economy allows for them to have all three approaches that China, Japan, and Korea had. Large Domestic Market lets it have a strong orientation towards it. Like Japan. The size of it allows China to develop its own standards. Recent global expansion shows that China may also have internationally branded manufacturers. ZTE and Huawei for example. China leads in the import and exporting of mobile phone components Consider talking about: China Mobile China Unicom China Telecom

11 Conclusion “Globalism has led to different opportunities to enter the value chain for firms and countries. Large developing countries are the most enabled to enter high value parts of the chain. China, given its internal diversification, has been able to enter multiple parts of the value chain.”


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