From the perspective of new international division of labor theory,_______________.
A) commodity production takes place in whatever part of the world can provide the most profitable combination of labor and capital
B) high-income countries and low-income countries are both dependent on transnational corporations for cheap goods
C) producer-driven commodity chains are the only relevant type of commodity chain
D) transnational corporations pay high taxes in order to find locations that will provide cheap labor

Question

From the perspective of new international division of labor theory,_______________.
A) ​commodity production takes place in whatever part of the world can provide the most profitable combination of labor and capital
B) ​high-income countries and low-income countries are both dependent on transnational corporations for cheap goods
C) ​producer-driven commodity chains are the only relevant type of commodity chain
D) ​transnational corporations pay high taxes in order to find locations that will provide cheap labor

Quizplus · Accepted Answer

The new international division of labor theory emphasizes the global dispersion of production through the fragmentation of the production process, where different components of a product are produced in different countries. Commodity production takes place in whichever part of the world can provide the most profitable combination of labor and capital, regardless of whether it is a high-income or low-income country. This has led to the growth of export-oriented manufacturing in developing countries and the decline of manufacturing in developed countries. The theory does not suggest that transnational corporations pay high taxes or that producer-driven commodity chains are the only relevant type of commodity chain.

From the Perspective of New International Division of Labor Theory,_______________