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GLOBAL PRODUCTION NETWORKS

Neil M. Coe

Introduction

The world economy has changed profoundly in recent times. It is now widely accepted that organizationally fragmented and geographically dispersed production systems constitute the dominant ‘architecture’ of the contemporary global economy. These systems, which have risen to prominence since the 1990s, are tightly controlled and coordinated by lead firms that derive power from their dominant position in either intermediate or final consumer markets. In its World Investment Report 2013, for instance, UNCTAD estimated that some 80 per cent of international trade was now organized through so-called global value chains/production networks (UNCTAD, 2013). Their emergence has posed key challenges ...

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