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Value Chains: The New Economic Imperialism

Dan Bell

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Published in Worth Books

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The term "value chain" was first coined by Michael Porter in his 1985 book, Competitive Advantage. Porter defined a value chain as "the sequence of activities that a firm performs to design, produce, market, deliver and support its products." Value chains can be used to analyze the flow of goods and services from the point of origin to the point of consumption. They can also be used to identify areas of waste and inefficiency, and to develop strategies for improving performance.

In recent years, the concept of value chains has been increasingly used to analyze the global economy. Global value chains are complex networks of production and distribution that span multiple countries. They typically involve a lead firm, which coordinates the activities of a number of suppliers and subcontractors. The lead firm typically designs the product, manages the marketing and sales, and assembles the final product. The suppliers and subcontractors provide the raw materials, components, and labor needed to produce the product.

Value Chains: The New Economic Imperialism

by Worth Books

4.5 out of 5

Language	:	English
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Print length	:	214 pages

Global value chains have become increasingly important in the global economy. They allow firms to access global markets and to reduce their costs. However, global value chains can also lead to a number of problems, including:

* **Exploitation of workers:** Workers in developing countries are often paid low wages and work in dangerous conditions. * **Environmental degradation:** The production of goods in developing countries can lead to environmental degradation, such as pollution and deforestation. * **Economic inequality:** Global value chains can lead to economic inequality, as the profits from production are often concentrated in the hands of a few lead firms.

The New Economic Imperialism

The rise of global value chains has been accompanied by a new form of economic imperialism. This new form of imperialism is based on the control of global value chains by a few large multinational corporations. These corporations use their control of global value chains to exploit workers, extract resources, and evade taxes.

The new economic imperialism has a number of negative consequences for the global economy. It leads to:

* **Increased inequality:** The profits from global value chains are concentrated in the hands of a few large multinational corporations. This leads to increased inequality between the rich and the poor. * **Stagnant wages:** The exploitation of workers in developing countries has led to stagnant wages in developed countries. * **Environmental degradation:** The production of goods in developing countries often leads to environmental degradation, such as pollution and deforestation. * **Reduced economic sovereignty:** The control of global value chains by a few large multinational corporations reduces the economic sovereignty of countries.

The rise of global value chains has had a significant impact on the global economy. Global value chains have led to increased efficiency and lower costs, but they have also led to a number of problems, including exploitation of workers, environmental degradation, and economic inequality. The new economic imperialism is a form of economic imperialism that is based on the control of global value chains. The new economic imperialism has a number of negative consequences for the global economy, including increased inequality, stagnant wages, environmental degradation, and reduced economic sovereignty.

Value Chains: The New Economic Imperialism

by Worth Books

4.5 out of 5