International Division of Labor Summary

Historic Context: From the 18th to mid-20th centuries, industrialized nations (UK, France, Netherlands) produced goods for trade with other industrialized nations and colonies.
Old International Division of Labor (OIDL): Characterized by industrialized countries as producers and non-industrialized countries as raw material suppliers.
Shift in Labor Division: Mid-1970s marked a transition to the New International Division of Labor (NIDL) due to vertical disintegration and relocation of labor-intensive manufacturing to developing countries.
Key Authors: Fröbel, Heinrichs, and Kreye (1980) identify NIDL as:
- Undermining the separation of industrialized and developing countries.
- Increasing subdivision of manufacturing into various operations globally.
Historical Perspective: NIDL reflects a cyclical crisis of profit realization similar to historical crises that prompted changes in production processes.

Broader Geographical Spread: Manufacturing spread to various regions like Central America, East Asia, and Africa post-1970s.
Rise of Multinational Corporations: Increased number of MNCs due to greater transnational economic activities.
Space-Shrinking Technologies: Advances in transport and communication improve coordination of production and distribution.