This article applies the global commodity chain approach to analyze the way policymakers encouraged an automotive commodity chain to touch down in silao, mexico. Commodity chains and global capitalism, 1994 online. It underscores the wide and interdisciplinary appeal of chain approaches for analyzing the economic, social, and political dimensions of international trade and production. The way firms do business in the international economy thus is determined to. The continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. In the early 2000s, the global commodity chains research agenda helped to spawn the closely related global value chain and global production network approaches. Pdf in global capitalism, economic activity is not only international in scope. A commodity chain refers to a network of labor and production processes whose end result is a finished commodity. More formally, gcca refers to the systematic study of commodity chains and seeks to explain the.
Article information, pdf download for global commodity chains. Walmart, not general motors, is the worlds largest corporation. First, the global commodity chains framework will be outlined, with an emphasis on the structure and dynamics of buyerdriven chains. Commodity chains in the capitalist worldeconomy prior to. Constructing the commodity chain functional analysis and. Global value chains have become a dominant feature of world trade, encompassing developing, emerging, and developed economies. Extending the frontiers of commodity chain research, this distinctive volume includes original work from major figures in sociology, history, geography, and labor studies.
American behavioral scientistgereffi shifting governance. Producerdriven and buyerdriven global commodity chains globalization has been promoted by industrial and commercial firms alike, which have established two distinct types of international economic networks that have been called producerdriven and buyerdriven global commodity chains, respectively see figure 1 gereffi, 1994, 1999. This new business model relies on narrow niches of specialisation and trading in tasks to fragment the production process across numerous countries. It is a series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market. Gary gereffi is emeritus professor of sociology and director of the global value chains center at duke university. Sep 01, 2005 this article applies the global commodity chain approach to analyze the way policymakers encouraged an automotive commodity chain to touch down in silao, mexico. Monday, june 11, 2007 global commodity chains global commodity chains this reading is from the introduction to commodity chain and global capitalism, by gary gereffi, miguel korzeniewicz, and roberto p. Introduced by gereffi during the mid1990s, the gcc concept was developed within an analytic framework of the political economy of development and.
The term used to refer to industries in which larger retailers, brandname merchandisers, and trying companies set up decentralized production. Internationalization refers to the geographic spread of economic activities across national boundaries. A commodity chain is a process used by firms to gather resources, transform them into goods or commodities, and finally, distribute them to consumers. This reading is from the introduction to commodity chain and global capitalism, by gary gereffi, miguel korzeniewicz, and roberto p.
Producer and buyerdriven value chains the geography of. Producerdriven commodity chains, which dominated during an era of fordist production, are rapidly giving way to buyerdriven commodity chains in which giant retail conglomerates call the shots. Pdf on jan 1, 1994, gary gereffi and others published the organization. Buyer driven commodity chains the term used to refer to industries in which larger retailers, brandname merchandisers, and trying companies set up decentralized production networks in various middle and lowincome countries. Citeseerx document details isaac councill, lee giles, pradeep teregowda. Constructing the commodity chain, functional analysis and flow charts 3 involving a combination of physical transformation and the input of various producer services, delivery to final consumers, and final disposal after use 3. Constructing the commodity chain functional analysis and flow. First, i discuss the motivations for supplementing the buyerdriven and producerdriven modes of global commodity chain governance developed by gary gereffi in the 1990s with an industryneutral, nonempirical framework. In the case of fresh produce, this means major food retailers barrett et al. Gary gereffis chapter in the 1994 book he edited with miguel korzeniewicz, commodity chains and global capitalism westport, ct. The whole process of producing goods, from raw materials to finished products, is increasingly carried out wherever the necessary skills and materials are available at competitive cost and quality.
The primary focus of global commodity chain gcc analysis is the international trading system and the increasing economic integration of international production and marketing chains. Korzeniewicz eds, commodity chains and global capitalism edited by westport. Pdf the organization of buyerdriven global commodity. Producerdriven commodity chains retailers, branded marketers, and traders require fullpackage supply from overseas factories. Buyerdriven commodity chains refer to those industries in which large. The purpose of the introduction is to provide some basic concepts regarding global commodity chains gccs, and to orient the reader to the scope. Initially in the global commodity chains framework,governance was described broadly in terms of buyer driven or producerdriven chains gereffi,1994. In global capitalism, economic activity is not only international in scope, it is also global in organization. Second, the main organizational features of buyerdriven commodity chains. Gereffi, gary 1994, the organization of buyerdriven global commodity chains.
In the early 2000s, the global commodity chains research agenda helped to spawn the closely related global value. This volume develops a new set of conceptual categories for analyzing new patterns of global economic organization. Multinational corporations and global value chain analysis. Indeed, it has been a prominent feature of the world economy. Nov 25, 2016 a key reality of the current trade agenda is the rise of global value chains gvcs. Global value chains gvc come in two major categories depending on which actor has the most significant influence. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the. Because firms contribute economic value through these the activities, the chains are often referred to as. Pdf on jan 1, 1994, gary gereffi and others published the organization of buyerdriven global commodity chains. The organization of buyerdriven global commodity chains. Globalisation, value chains and development institute of. Largest retailer in the world directs the biggest supply chain. The purpose of the introduction is to provide some basic concepts regarding global commodity chains gccs, and to orient the reader to the scope of the texts treatment of. The article explains that the changing dynamics of the global auto industry have transformed.
Feb 18, 2010 first, i discuss the motivations for supplementing the buyerdriven and producerdriven modes of global commodity chain governance developed by gary gereffi in the 1990s with an industryneutral, nonempirical framework. The value chain describes the full range of activities that firms and workers perform to bring aproduct from its conception to end use and beyond. Project muse economic development policymaking down the. Frontiers of commodity chain research jennifer bair. This can be either the producer manufacturer or the buyer. Global commodity chains can be dynamic and change rapidly global commodity chains can reveal dynamics of interplace competition ex. Bekleidungsindustrie grenzen des upgradingkonzepts global value chains gvc gereffi humphrey sturgeon 2005 governancetypen dynamik global production networks gpn henderson et. The current restructuring of the worldeconomy under global capitalism has further integrated international trade and production. Producerdriven gvcs tend to have high barriers of entry since many commodity chains require capitaltechnologyintensive production and economies of scale, such as in.
A complex pattern of international labor and production processes that result in a finished commodity ready for sale in the marketplace. Global commodity chain analysis has its basis in theoretical political economy and focuses on the role of power relations and supply chain structure in determining market outcomes. How us retailers shape overseas production networks, in g. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the operation. He has published over a dozen books and numerous articles on globalization, industrial upgrading, and social and economic development, and he is one of the originators of the global value chains framework. The contributors to this volume explore and elaborate the global commodity chains gccs approach, which reformulates the basic conceptual categories for analyzing new patterns of global organization and change. Second, the role of each of the big buyers retailers, marketers and manufacturers in forging global sourcing networks in the apparel commodity chain will be highlighted. Trade wo fdi retailers, global brands, manufacturers. Global commodity chains have three main dimensions. Pdf a commodity chains framework for analyzing global. Jul 30, 2015 the continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies.
Praeger, entitled the organization of buyerdriven global commodity chains. Retailers shape overseas production networks find, read and cite all. The article explains that the changing dynamics of the global auto industry have transformed it into an assembler driven commodity chain. A global value chain perspective on industrial policy and. Pdf the organization of buyerdriven global commodity chains. Commodity chains are most simply defined as the link between successive processes of manufacturing that result in a final product available for. Industrial and commercial capital have promoted globalization by establishing two distinct types of international economic networks, which can be called producer driven and buyer driven global commodity chains, respectively gereffi, 1994.
The attention given to this concept has quickly translated into an expanding body of global chains literature. This includes activities such as design,production, marketing, distribution and support to the final consumer. Pdf a commodity chains framework for analyzing global industries. Commodity chain analysissometimes also known as the global commodity chains gcc approachis a development of the worldsystem perspective. It underscores the wide and interdisciplinary appeal of chain approaches for analyzing the economic, social, and political dimensions of international trade and production networks. Analysis of buyerdriven chains highlights the powerful role of large retailers, such as walmart and tesco, as well as highly successfully branded merchandisers e. Global commodity chains and global value chains oxford. Producer driven and buyer driven global commodity chains globalization has been promoted by industrial and commercial firms alike, which have established two distinct types of international economic networks that have been called producer driven and buyer driven global commodity chains, respectively see figure 1 gereffi, 1994, 1999. Chapter 3 global supply chains development of global supply chains from automobiles, electronics, and plastics, to software development or clothing, many goods and services today are provided via global supply chains box 3. From commodity chains to value chains and back again. More formally, gcca refers to the systematic study of. Jackson and colleagues point out that though the agrofood literature has been in. By focusing on the chain or organisational network as the unit of analysis, rather than the.