March 28th lecture

March 28th lecture - -Knowledge economics Trading ideas-Cultures of trust Being able to do things together-Globalized Production

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The Production Circuit of Capital M-C< L, MP--------P-------C’-----M’ -C: Commodity -L: Living labor -MP: Means of Production C’: Finished commodity M: Money M’: Profit P: Production Producing what? Think of material things. Also produce ideas and information -Capital goods : Goods produced for businesses -Ex. Machines for factories and farming -Consumer goods : Ex. Clothing, food, TV, shoes -Labor or capital intensive : -Labor: Require lots of human labor -Ex. Garment industry -Capital intensive: Machines do most of work -Information : Producing nonmaterial things -Entertainment : Sports, television shows, movies Geographies of production -Localized clusters: When different companies that produce similar stuff, locate near to each other -Ex. Silicon Valley -Transport : Close to transport networks to get products to market -Raw material and finished commodity transport -Labor : Certain sectors are going to want the same type of works
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Unformatted text preview: -Knowledge economics : Trading ideas-Cultures of trust : Being able to do things together-Globalized Production Systems-“Time-space compression”: Shrinking the amount of time it takes to traverse space -Ex. Global supply chains: -Just-in-time production: Computers allow companies to track demand, only produce as much as they need-Vulnerable to disruptions-Ex. Containerization: Decrease transport costs-Global competition Intra-Firm Relations-Organizing Production-Corporate Headquarters-Research and Development-Manufacturing Facilities-Vertical integration: -Fordist type of industrial organization Inter-Firm Relations: International subcontracting (externalized transactions_-Vertical disintegration (Original design materials vs. Original equipment materials: All production is in house)-Outsource The politics of subcontracting: Subcontracts aren’t part of company-Sweatshops...
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This note was uploaded on 02/15/2012 for the course GEO 273 taught by Professor Gentry during the Spring '08 term at Syracuse.

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March 28th lecture - -Knowledge economics Trading ideas-Cultures of trust Being able to do things together-Globalized Production

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