14 lecture slides - I. ECONOMIC GLOBALIZATION: G...

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GLOBALIZATION AND TRADE LECTURE 14 I. ECONOMIC GLOBALIZATION: CAUSES AND CHARACTERISTICS Colonial international division of labor New international division of labor (NIDL) 1960s/70s ! Relocation of low-skill, routine manufacturing tasks to low-wage regions ! Emergence and bifurcation of a global labor force Why the NIDL? ! TW depeasantization (unequal land, GR, cheap food) ! Success of EOI and the NICs ! New information and transportation technologies (esp. “the box”) ! Deregulation of trade, capital Fows THE BOX “The core of a highly automated system for moving goods from anywhere to anywhere, with a minimum of cost and complication.” (from The Box )
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CONTAINERIZATION TRANSFORMED GLOBAL TRADE ! began in 1960s ! drastically reduced freight costs ! reduced transportation time ! more predictable delivery schedules ! decimated dock and merchant marine labor ! changed the geography of trade (port shift) Standardization of intermodal cargo containers: ! 1968-1970: ISO standards introduced (International Organization for Standardization, ensuring interchangeability between different modes of transportation worldwide ! 20 ft x 8 ft and 40 ft x 9 ft units most commonly used ! Cargo measured in twenty-foot equivalent units (TEUs) ! Cargo can be moved from ship, to train, to truck without unpacking and with very little labor cost 17 million ISO containers in use world wide transport 90% of non-bulk cargo 26% now originate from China
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Containers, Port of Singapore A post-Panamax crane II. ELEMENTS OF THE NIDL Transnational corporations (TNCs) : Companies that operate in a number of countries, often to take advantage of lower wages or regulations as well as increase market presence. Export processing zones (EPZs)/ Free trade zones (FTZs) ! “Export estates,” minimal regulation and taxes ( Life and Debt ) ! Facilitate foreign investment (of a sort) and access to cheap labor Ireland 1958
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14 lecture slides - I. ECONOMIC GLOBALIZATION: G...

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