Intermodality, E-Commerce, Logistics and Sustainability
Transport Economics, Management and Policy series
Edited by Thomas R. Leinbach and Cristina Capineri
Chapter 4: Globalized Trade and Logistics: North American Perspectives
Jean Paul Rodrigue and Markus Hesse GLOBAL PRODUCTION NETWORKS World trade has become a network of cross-border arbitrage on diﬀerentials in labor availability, wages, interest rates, exchange rates, prices, saving rates, productive capacities, liquidity conditions and debt levels. (Liu 2005) Introduction Recent contributions by Dicken et al. (2001) and Coe et al. (2004) have raised the issue of emerging global production networks (GPN) that have been established as a consequence of innovations in information and communications technology and of the increasing degree of global economic and social integration coined as globalization. GPN emerged to cover major parts of the globe, very dynamically in countries recently integrated to the new geography of global production. This is particularly the case for the Far East where initial settings occurred in Korea and Taiwan, but have expanded to locations such as China, India and Indonesia. In the western hemisphere, the US–Mexican border region or parts of the European periphery (for example, Ireland, Scotland) and more recently in the middle-east of Europe have also seen developments. As Dicken (2003) pointed out in his seminal ‘Global Shift’, the establishment of GPN no longer occurs only in traditional, natural resource-based and labor-intensive branches such as the apparel industry but also in highly competitive, modern industries including electronics and computers (including components), machinery and automotive. Indeed, there is a global shift in the making for GPN both in their sectors of operation and in their geography. It seems to be long ago that manufacturing branch plants...
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