What can the inside of an iPod tell us about the intricate web of supply chains and global trade dynamics? In this column for Mint, Niranjan Rajadhyaksha looks at the implications for policy back home, given that supply chains in China are set to move. Excerpt:
"The complex iPod value chain is a microcosm of the broader production networks flung across the world in an intricate web of sourcing agreements. The production chain is fragmented—and also efficient. This is what distinguishes the first wave of globalization from the second wave. Free trade in the 19th century was largely about shipping raw material from one part of the world to factories making finished products in another part, a system built on colonial muscle. Free trade in the second wave of globalization has largely been about components made in various countries so that they can be assembled into a final product and sold to consumers. That is why international trade in industrial products is now dominated by the movement of intermediate rather than finished goods across national boundaries."
Read the full article here.