Global Commodity Chains and Labor Exploitation

Flashcards covering key vocabulary related to global commodity chains, labor exploitation, and economic structures based on the provided lecture notes.

Immigration policies

Rules and laws governing who can enter, reside, and work in a country, often making it difficult for people from Global South countries to immigrate to Global North countries.

Global North country

A term used to describe developed, industrialized countries, typically in North America, Europe, East Asia, and Oceania.

Global South country

A term used to describe developing, less industrialized countries, typically in Africa, Latin America, and parts of Asia.

Brain drain

The emigration of highly trained or intelligent people from a particular country or to another for better opportunities.

Global labor arbitrage

The practice of leveraging variations in labor costs across different countries to reduce overall production expenses, often by moving manufacturing to low-wage regions.

Unit labor costs

The average cost of labor per unit of output; often significantly lower in Global South countries compared to Global North countries, driving production to the former.

Global Commodity Chains (GCC)

The interconnected networks of labor and production processes that originate in the extraction of raw materials and end with the consumption of a finished product.

First kind of Global Commodity Chain

Characterized by large multinational companies (e.g., General Motors, Nestle) that often have subsidiaries in other countries and traditionally involve Foreign Direct Investment (FDI).

Subsidiary

A company controlled by a parent company, often located in a different country.

FDI (Foreign Direct Investment)

An investment made by a firm or individual in one country into business interests located in another country, often involving establishing or acquiring subsidiaries.

Arm's length contracts

Agreements or transactions made between unrelated and independent parties, operating at a distance from each other, often used in global supply chains for outsourcing production.

Second kind of Global Commodity Chain

Characterized by companies (e.g., Nike, Apple) that outsource almost all production processes through arm's length contracts with many suppliers and manufacturers globally; also known as buyer-driven chains.

Buyer-driven chains

Global commodity chains where large retailers and branded marketers (the 'buyers') control the production process, design, and marketing, while outsourcing manufacturing to independent suppliers.

Tier one suppliers

Direct suppliers to a main company (e.g., VW's direct parts suppliers).

Tier two suppliers

Suppliers to tier one suppliers, further down the global commodity chain.

Foxconn

A major Taiwanese multinational electronics contract manufacturer, known for its extensive factory plants in Mainland China, often located in Export Processing Zones.

Export Processing Zone (EPZ)

A zone within a country (often guarded and offering tax incentives) specifically designated for export industries, where factories are built to satisfy foreign capital.

Hukou system

A household registration system in China, developed during the Mao era, that ties citizens' benefits (housing, healthcare) to their place of registration, creating a sharp divide between urban and rural populations.

Floating population

Migrant workers in China who move from rural areas to urban centers for work but cannot access benefits in their new locations due to the Hukou system, making them dependent on employers.

Labor intensive industries

Industries that require a large amount of human labor relative to capital, such as garment, shoe, and electronics factories.

Feminization of labor

The global trend of increasing employment of women in the formal and informal workforce, particularly in labor-intensive industries, often due to assumptions by employers about cheaper and more flexible labor.

Essentialized notions

Stereotypical and often sexist beliefs about inherent characteristics of a group (e.g., women being passive, obedient, or having 'nimble fingers') used to justify labor practices.

Meritocratic argument (GCCs)

A perspective, often from mainstream scholars, suggesting that despite the complexity of global commodity chains, all participating firms (including small suppliers) can gain power and climb the economic ladder based on their contributions.

Unequal economic power among firms

The critical theory argument that even with decentralized production in global commodity chains, significant power imbalances persist between large multinational corporations and their suppliers.