The Global Commodity Chain Is The Rise Of China Essay

940 Words4 Pages
The definition of the Global Commodity Chain is that it is the network created among the global south and the corporations of the global north in order to produce and deliver products to consumers. It has four key elements, Intellectual property rights, communication, transportation, and the structure of factories in the third world. A great example of the global commodity chain is the rise of China. In 1994, China passed a law that allowed the privatization of state owned enterprises, the end of welfare programs, and the relaxation of FDI barriers. This completely changed the landscape of the working class in China. The number of rural enterprises sharply declined in favor for these new, inner city manufacturing jobs. Social goods like medical care and education went from being free to being obtained at a price. Peasants from the countryside where suddenly dropping everything they had and trying to become a part of this new commodity chain. The workers appreciated the fact that the urban wages where three times as much as the rural. Through the 1990s, the Chinese industry was making products in all sectors. But, these products weren’t being consumed by the millions that produced these products. It was being consumed by the north. The products went directly into the shipping containers that head for Los Angeles and San Francisco. This cycle worked because the North’s average consumer ate up the idea of the same products that where produced locally, but at a remarkably lower
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