Global Division Of Labour

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The ensuing collapse of Fordism and the movement towards a post-fordist society has radically changed the division of labour. While there are a vast number of changes in this system since the 1980s, this essay will examine how a new division of labour has been established starting with examining how the globalisation has enforced institutions that have established an environment for competition driven tariff cutting through the race to the bottom concept. This will further be examined in the impact that these changes have affected the core consumer of individuals from the north and how people in developed nations are employed with low wages and rely on high credit. Another change that has had a massive impact is growth in female workers from …show more content…

One area of interest is how the dynamics of work in these mass factories and other blue collar type-work in the global ‘north’ began to geographically shift towards the third world and developing nations. Investment in industrial export production in the third world has been consistently increasing over time, as a new international division of labour has been enforced. World system theory argues that the expansion of this global division of labour over time has divided the world’s nations into three categories: the core, the semi-periphery and the periphery (Klak 2014, 121). Nations in the core are those that control the global economic order while also producing higher-skill, capital-intensive innovations. Nations in the semi-periphery are situated between both core and periphery nations as they provide skilled labour while also facing development. Periphery nations are those that provide low-skill production and raw materials for multinational industries while facing extreme poverty and development hurdles (Klak 2014, 123). The relationship between the core nations and the periphery nations in terms of their production processes can be conceptualized as being a race to the bottom between nations. The argument is that in the current global economic system, developing nations in the periphery need to attract the interest of outsourcing Multi National Cooperation’s through …show more content…

Those that agree with this argument use the example of how the economies of several East Asian nations such as China, South Korea and Singapore have rapidly grown following competition driven tariff cutting (Vézina 2014, 450). The rise of Chinese industry through these methods in particular has proven to be essential in providing products that are heavily consumed by the core nations. Examples of outsourcing production to China can be seen from recycling scrap metal, where due to the high global demand in all aspects of life, it is cheaper and more efficient to ship scrap metal from the US to China where the female workers do repetitive manual labour for low wages (Seabrook 2008, 57). Or it can be seen in leading the production of electronics through Foxconn, where more than a million manufacturing workers in China produce orders from leading electronic brands such as Samsung, HP, Sony, Apply and Microsoft to manufacture products to be consumed by the people in the core nations (Ngai and Chan 2012, 387). While some industries such as these are able to positively benefit from foreign direct investment influxes from multinational corporations, there are arguments contesting that there are serious implications of this system. Those who contest with Rivoli’s argument, argue that this race to the

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