A diversification of spaces and actors in production
In the context of globalisation, defined as the increasing intensification of exchanges, production systems have transformed and been relocated. The primary actors in globalisation, transnational corporations (TNCs), in their pursuit of profits, have implemented strategies to relocate production, creating competition among territories. Companies seek territories with comparative advantages, prompting us to question whether TNCs, more than states and local authorities, structure our territories by managing global flows. Additionally, the new international division of labour (NIDL) shaped by TNCs raises questions about the changing role of political actors. This analysis explores the diversity of production spaces and actors, the competition among territories, the multiplication of flows, and their consequences
#1. Diversity of productive spaces
#A. New international division of labour and resource-supplying countries
#a) Command concentration
The NIDL centralises command functions in developed territories, especially within the Triad (North America, Western Europe, East Asia). Production operations are divided (design, assembly, marketing) and distributed based on production costs to maximise profits.
For example, Apple’s corporate headquarters are located in Cupertino in the Silicon Valley, where the focus is on innovation, design, and strategic decisions, while its products are assembled in factories in China, such as those operated by Foxconn in Shenzhen. Similarly, Tencent’s global influence is anchored in its Shenzhen headquarters, emphasising software development and internet services.
Additionally, European companies such as Airbus reflect this division. Its components are manufactured across various countries: wings in the UK, fuselage in Germany, and final assembly in Toulouse, France; leveraging the strengths of each region to maintain efficiency and competitiveness.
#b) Outsourcing strategy: production relocation
Production is relocated to areas with comparative advantages, with Asia receiving 80% of these activities. China, the “world's workshop,” became the leading industrial power in 2013. However, with its ageing population, China is increasingly outsourcing production to countries like Vietnam, where labour is cheaper and regulatory environments are favourable. Vietnam's garment industry, heavily reliant on TNCs like Nike and Adidas, highlights this shift, producing goods for global markets while developing its own export economy.
Another example is Ethiopia, which has emerged as a hub for textile production, attracting companies like H&M and PVH (owner of Tommy Hilfiger). The combination of low wages, favourable trade agreements, and improving infrastructure has made Ethiopia a rising star in Africa's manufacturing landscape.
#c) Resource-supplying countries
The unequal distribution of resources also structures global flows. Resource-rich countries, especially in Africa (e.g., Angola, Nigeria) and Latin America (e.g., Venezuela), hold significant advantages but face geopolitical tensions. Russia, as the leading gas producer, provides an illustrative case. Following the Russia-Ukraine conflict and subsequent sanctions, Europe sought alternative suppliers such as Qatar, which increased its liquefied natural gas (LNG) exports to meet growing demand.
In addition, Venezuela, holding some of the world's largest oil reserves, demonstrates the volatility of resource dependency. Economic mismanagement and political instability have hindered the country from fully capitalising on its resources, despite high global demand.
In the agricultural sector, Brazil's dominance in soybean production highlights the importance of resources in structuring global trade. As a major supplier to China, Brazil benefits from its vast arable land and investments in agri-tech, yet it faces challenges from environmental concerns such as deforestation in the Amazon.
#B. The role of TNCs
#a) Major globalisation actors
Approximately 100,000 TNCs drive global production flows, with 427 of the top 500 originating in the Triad. Companies like Shell and BP dominate the energy sector, leveraging global supply chains to extract and distribute resources. Meanwhile, companies from emerging economies, such as Tata (India) and Huawei (China), have become global competitors, with Tata acquiring iconic Western brands like Jaguar Land Rover.
The acquisition of American agricultural firm Syngenta by Chinese state-owned ChemChina underscores the strategic importance of TNCs in securing resources and technology. This $43 billion deal reflects China’s broader efforts to ensure food security and technological leadership.
#b) The importance of digital actors
Digital firms dominate with growing revenues. The GAFAM (Google, Amazon, Facebook, Apple, Microsoft) control the sector, with 60% originating from the US, UK, or Germany. For example, Amazon’s global logistics network integrates production and consumption, with fulfilment centres in regions like India and Southeast Asia serving millions of customers worldwide. This model reshapes traditional retail and fosters economic interdependence.
Chinese digital firms such as Alibaba and Tencent are also critical players, particularly in developing markets. Alibaba’s AliExpress facilitates cross-border trade, connecting small Chinese manufacturers with global consumers. These companies represent a new dimension of globalisation, where data and algorithms complement physical trade.
#2. Competition among productive actors and territories
#A. Public actors' roles
#a) States and local authorities
States and local governments strive to attract companies, improving access to digital infrastructure and transport while promoting economic dynamism and employment. Ireland’s low corporate tax rates have drawn tech giants like Google and Apple, creating a tech ecosystem in Dublin's “Silicon Docks.” Similarly, Special Economic Zones (SEZs) offer tax incentives and infrastructure to attract electronics manufacturers.
Mauritius exemplifies an innovative approach, focusing on “smart cities” to integrate sustainable development with economic growth. This policy aims to attract eco-conscious businesses while enhancing the quality of life for residents.
#b) Regulatory agents
Among the actors in globalisation, international institutions (e.g., UN, World Bank) play regulatory roles, though they often face criticism for favouring dominant states. For instance, the World Bank has funded large-scale infrastructure projects that facilitate global trade but occasionally provoke environmental or social concerns.
Non-governmental organisations (NGOs) and the media also monitor and challenge corporate behaviour. Organisations such as Oxfam and Greenpeace campaign against issues like poor working conditions, child labour, and environmental degradation. These regulatory agents raise questions about who truly benefits from globalisation, as seen in resource-rich yet impoverished nations like Angola.
#B. Territorial typologies and competition
#a) Competition and complementarity
Emerging and workshop countries organise their territories based on the most profitable sectors. For instance, Shenzhen competes with Silicon Valley as a global tech hub, while simultaneously serving as a manufacturing base for Silicon Valley-designed products via firms like Foxconn.
In the global labour market, qualified professionals from developing countries contribute to their home economies, though many migrate to developed nations in search of higher wages. This “brain drain” fuels global inequalities but also strengthens connections between economies.
#b) Typology of territories in globalisation
Four levels of territories can be distinguished in globalisation:
- Core of the NIDL: Developed countries of the Triad, such as the US, Japan, and Germany, host the headquarters of major corporations and generate the flows of production outsourcing.
- Integrated periphery and relay centres: Emerging economies and workshop countries like BRICS (Brazil, Russia, India, China, South Africa), Southeast Asian nations (Thailand, Indonesia, Vietnam), and North African countries, which attract the initial waves of outsourcing strategies.
- Resource-dependent regions: Countries rich in natural resources, such as oil-exporting Gulf states, Maghreb nations, and Venezuela, as well as niche economies leveraging tourism or favourable tax policies, such as Mauritius or the Maldives.
- Marginalised peryphery: Countries on the periphery of globalisation, including landlocked or resource-poor nations and the least developed countries (e.g., Central Asia and sub-Saharan Africa). Many of these rely on raw material exports to more developed regions.
Each category illustrates how globalisation shapes economic roles and influences development potential, often deepening inequalities but also creating opportunities for growth.
#3. The multiplication of flows and consequences
#A. Intensified exchanges
Since the 1990s, goods trade has tripled, with ten countries controlling half of global trade. For example, Germany is a global leader in machinery exports, while China dominates electronics and apparel. The growing significance of developing nations is seen in Mexico, a hub for automotive manufacturing, supplying both the US and global markets.
Financial flows also highlight globalisation's intensity. Foreign direct investment (FDI) by TNCs has transformed economies like India, which now hosts major IT service hubs for global firms like IBM and Accenture. Financial centres such as Shanghai and Mumbai were growing rapidly, challenging established players like New York and London.