Chapter 9 : Evolving division of labour

This chapter explains how globalisation has changed where people work, how products are made, and how workers are treated.

In the past, most products were made in one country. Today, companies often spread production across several countries to save money and become more efficient.

For example, a clothing company might design clothes in Sweden, manufacture them in Bangladesh and sell them around the world.

This creates both benefits and problems, give examples

Benefits: Cheaper products, more trade, new jobs and economic growth.

Problems: Low wages, unsafe working conditions, job losses and inequality.

WHat is the division of labour?

“Arbeidsdeling”. Def: Dividing work into different tasks so people, companies or countries can specialise in what they do. This makes production faster and more efficient

The three important stages of division of labour

1. International Division of Labour (IDL)

• Countries specialising in different types of production based on their resources, capabilities and economic advantages.

• Example: Norway produces oil, while Bangladesh produces clothing.

2. New International Division of Labour (NIDL)

• From the 1970s, many companies moved manufacturing from wealthy countries to less developing countries.

• Why? Mainly to reduce production costs, especially wages.

3. Global Division of Labour (GDL)

• Production and work are connected across many countries through global networks. Developing economics into a complex web of global networks

• Example: An iPhone is designed, manufactured, assembled and sold through activities in different countries.

Who is the importants thinkers when talking about division of labour and specialisation?

Thinker	Main idea
AdamSmith	Specialisation makes production more efficient
DavidRicard	Countries benefit from specialising in goods they produce at a lower opportunity cost
Karl Marx	The division of labour can give companies more power and lead to worker exploitation(behandler en gruppe dårlig for egen nytelse og financal gain) . It can increase capitalist control and reduce workers' autonomy

What is Special Economic zones (SEZ)

Definition: Areas within a country that have special business rules to attract foreign companies and investment.

For example, companies may receive lower taxes or fewer restrictions.

Example: Shenzhen in China became a major manufacturing centre after becoming an SEZ in 1980.

• Advantage: More investment, jobs and economic growth.

• Disadvantage: Workers may face poor conditions if protections are weak.

What is Global Value chain

Global Value Chains describe the different stages involved in producing a good or service, from raw materials to final consumption, across multiple countries. They help explain how companies coordinate production and who controls different activities

Who has the power in GVC and what is the different types of relationships in global value chains

Type	Simple meaning
Market	Companies buy and sell mainly based on price
Modular	Suppliers make products according to the buyer's specifications
Relational	Buyers and suppliers work closely together
Captive	A small supplier depends heavily on a powerful buyer
Hierarchy	One company controls production internally

From Market to Hierarchy, the level of coordination and power imbalance generally increases.

Why does this matter? Powerful companies can influence supplier prices, production standards and working conditions throughout the value chain.

• Large companies often have more power than their suppliers (leverandører)

What is Global labour governance and the International Labour Organisation (ILO) and the main key areas

GLG: The rules and organisations that try to protect workers around the world

ILO: A UN organisation that works to improve workers rights and conditions worldwide.

Main key areas:

• Freedom to join trade unions and negotiate together.

• No forced labour.

• No child labour.

• No discrimination at work.

• Safe and healthy working conditions.

What is Carrols CSR Pyramid and Corporate Social Responsibility?

CSR definition: When companies take responsibility for how their actions affect people, society and the environment, shown in the pyramid with four levels

Responsibility	Meaning
Economic responsibility	Make money and stay profitable
Legal responsibility	Follow the law
Ethical responsibility	Do what is right and fair
Philanthropic responsibility	Help society and communities Important criticism: Some companies use CSR mainly to look responsible rather than making real improvements.

Race to the bottom

A situation where countries compete for foreign investment by reducing labour costs, regulations or protections.

For example, a company might relocate production to a country where wages are lower and labour standards are less demanding.

This can put pressure on workers wages and conditions.

What is deindustrialisation, why does it happen and what is the consequences?

Def: When a country or region loses manufacturing industries and factory jobs.

Why?

• Companies move production to cheaper countries.

• Machines replace some workers.

• Economies move towards service industries.

Consequences

• Higher unemployment in affected areas.

• Fewer members in trade unions.

• Greater economic inequality.

• Political dissatisfaction

Changes in production methods: Taylorism, Fordism and Toyotism

• Taylorism = Efficiency through specialised tasks.

• Fordism = Mass production.

• Toyotism = Flexible production with less waste, ordering parts when needed

Gender and racial inequality in Global Labour:

Give som examples on gender inequality in Global Labour

Feminisation of Labour

Definition: The growing participation of women in the workforce, particularly in certain low-paid industries.

• Example: Many clothes factories in Bangladesh employ mostly women.

• This can provide women with jobs and financial independence, but these jobs may also involve low wages and poor conditions.

 

Social Reproduction

Definition: The work needed to care for people and maintain society and the workforce.

• Examples include raising children, cooking, cleaning and caring for elderly family members.

• Much of this work is unpaid and often performed by women.

 

Global Care Chains

Definition: When care work is organised across countries, often through migrant workers.

• Example: A woman moves from the Philippines to Norway to work as a caregiver, while relatives care for her children back home.

 

Racial Capitalism

Definition: The idea that racial inequality is closely connected to how capitalism has developed and operates.

• The concept helps explain why certain groups are more likely to work in low-paid or insecure jobs.

• Main point: Gender, race and nationality can affect the opportunities and working conditions people experience in the global economy.

Digitalisation and the future of work:

Gig Economy

Def: A labour market where people work short-term jobs or freelance instead of having permanent employment.

Examples: Uber drivers, food delivery workers and online freelancers.

Pros: Flexible working hours, Independant, easy

Cons: Unstable income, weaker security, does not have tariffs/ trade Unions

AI

• Positive effects: Higher productivity, lower costs and new job opportunities.

• Negative effects: Some jobs may disappear, workers may need new skills and powerful technology companies may gain more influence.

“The end of work Hypothesis”: The idea that technological progress could replace so much human labour that there will be significantly fewer jobs (Jeremy Rifkin).

Deglobalisation, slowbalisation, délocalisation, decarbonisation, circular economy

Deglobalisation	A reduction in global economic connections
Slowbalisation	Globalisation continues, but grows more slowly
Relocalisation	Moving production closer to where products are sold
Decarbonisation	Reducing carbon emissions
Circular Economy	Reusing, repairing and recycling products to reduce waste

Most important definitions

Key concept	Definition to memorise
Division of Labour	Dividing work into specialised tasks
IDL	Countries specialise in different types of production
NIDL	Manufacturing moves from developed to developing countries
GDL	Production and labour are connected globally
MNC	A company operating in several countries
GVC	The different steps involved in producing a product globally
GPN	A global network of companies, workers and institutions
SEZ	An area with special rules to attract foreign investment
ILO	An organisation protecting workers' rights worldwide
CSR	Companies taking responsibility for their impact on society
Race to the Bottom	Competing for investment through lower costs or weaker protections
Deindustrialisation	Decline of manufacturing and industrial jobs
Fordism	Standardised mass production
Toyotism	Flexible production that reduces waste
Feminisation of Labour	Increasing participation of women in employment
Gig Economy	Short-term and freelance work, often through digital platforms
Precarious Work	Insecure work with limited protection