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The emphasis on the power of lead firms in global industries (which gave rise to the analysis of “governance structures”) and the development emphasis of many GVC researchers (highlighting the economic, social and environmental upgrading trajectories of countries) produced a unique amalgam of research questions and analytical tools.
The consumer has become a 'global dictator' which determines the organization of production and retailers seek to process consumer data to react to patterns of consumer demand. As such, there is a strong link between post-Fordism and the rise of information technology .
In economics, the new international division of labour (NIDL) is an outcome of globalization.The term was coined by theorists seeking to explain the spatial shift of manufacturing industries from advanced capitalist countries to developing countries—an ongoing geographic reorganisation of production, which finds its origins in ideas about a global division of labor. [1]
Moreover, economic restructuring requires decentralization as states hand down power to local governments. Where the federal government focuses on mainly warfare-welfare concerns, local governments focus on productivity. Urban policy reflects this market-oriented shift from once supporting government functions to now endorsing businesses. [16] [17]
Global value chains are a network of production and trade across countries. The study of global value chains requires inevitably a trade theory that can treat input trade. However, mainstream trade theories (Heckshcer-Ohlin-Samuelson model and New trade theory and New new trade theory) are only concerned with final goods.
A global production network is one whose interconnected nodes and links extend spatially across national boundaries and, in so doing, integrates parts of disparate national and subnational territories". [1] GPN frameworks combines the insights from the global value chain analysis, actor–network theory and literature on Varieties of Capitalism ...
This may involve restructuring market incentives or using mathematical methods such as intertemporal optimization for project analysis, or it may involve a mixture of quantitative and qualitative methods. [3] Common topics include growth theory, poverty and inequality, human capital, and institutions. [4]
GTAP (the Global Trade Analysis Project) is a global network of researchers [3] (mostly from universities, international organizations, and economic and climate/resource ministries of governments) who conduct quantitative analysis of international economic policy issues [broken anchor], including trade policy, [4] climate policy, [5] and globalization linkages to inequality and employment. [6]