Having read Chapter 20 by James Fallows I think my view on where everyday products come from has completely changed. He describes China’s factories as “the most startling and intense aspect of today’s China,” and the scale is almost impossible to imagine. I definitely found it interesting to discover that more than 100 million people work in factories across the country. In the Guangdong province alone many have more manufacturing workers than the entire United States did at one time. That statistic alone is huge. What stood out most to me though was Shenzhen’s transformation. In 1980, it was a small fishing village. After being named a Special Economic Zone nearly every rule that might restrict business development was changed or removed. Within a few decades, it became a massive city filled with skyscrapers and factories. The speed of that growth shows how powerful economic reform and global investment can truly be especially in such a short amount of time.
Fallows also explains that behind this growth are millions of young migrant workers who are simply looking for “the new life” in cities like Shenzhen. They end up working long hours through tough conditions but for many of them, these factory jobs mean an opportunity and a way out the rural poverty they are stuck within. I think if huge misconception within this reading is that so many people often assume China’s advantage as cheap labor and we see this when a businessman simply said “People think China is cheap, but really, it’s fast.” The real strength of China’s growth and economy lies deeper within the speed, flexibility and tightly connected supply chains within its country. I think the biggest thing I have realised since reading this chapter is that I don’t think I can look at a “Made in China” label the same way. It came to light to me that China doesn’t just manufacture products, it does so much more than that. It has built a system that powers the global economy and continues to do so. I wouldn’t be surprised if over time it also continues to grow worldwide. There’s so much more we don’t see behind the “Made in China” logo.
Reading about Nike and the global trainer industry definitely changed how I see brands. I used to think Nike’s success was mainly about simply producing stylish trainers and famous athletes. However, the chapter explains that Nike’s real strength comes from controlling design, marketing, and advertising, while most of the shoes are actually made overseas. One thing that surprised me was how quickly the trainer market grew in the 1980s. In fact, sales in the United States tripled between 1980 and 1990 reaching $12 billion. The main buyers were teenagers and trainers then started to become a symbol of ones status. By 1991, basketball shoes made up 22% of sales and it was then clear that it was no longer just about sport but was primarily about image.
Instead of owning factories, Nike focused on branding. As one executive said, “We are marketers and designers.” Most Nike shoes were made in countries like South Korea, Taiwan, China, and Indonesia, where wages were lower. As a result of this, costs were kept down while Nike were able to stay in control of the most profitable parts of their business.
The launch of Air Jordan was a major turning point. The first pairs sold out in just three days, and the partnership with Michael Jordan turned trainers into cultural icons. At this point Nike was not just selling shoes but was also selling identity and confidence for young individuals who looked up to these sport stars. However, the chapter also points out problems. Nike kept moving production to countries with cheaper labour which therefore raised concerns about working conditions. It made me realise that behind all well known brands there is always a more complicated global system.
After reading this chapter, just like China, I do not see Nike in the same way. The swoosh is not just a logo but it represents so much more such as a worldwide network. It shows that companies often make the most money not by producing goods themselves but by controlling the image and story behind them.
Overall, the readings show that globalisation is powerful and complex. Since WW2, trade and production have connected countries into one global economy but continuous growth and risk spread together, as seen in the 2008 financial crisis. China’s rise shows how manufacturing moved to fast growing industrial areas helping to lift millions out of poverty while also being able to supply Western consumers. Globalisation itself creates opportunities but also spreads problems just as quickly as growth. In my opinion it seems to connect the world but not on fair terms.
In the TAL episode, it is portrayed how Cambodia tried to grow its clothing industry by improving factory conditions and treating workers more fairly. After rebuilding from years of war, Cambodia depended heavily on garment factories for jobs. They hoped that by having better labor standards that big companies would choose to make their clothes there. However, something that stood out to me was how unfair the situation felt. Even though Cambodia was trying to do the right thing I think it was clear that they were still struggling. Their electricity prices are very high, which makes it even more expensive and difficult to produce clothing. Other countries can sell clothes for less money, even if their working conditions are worse. This made me realise how much the global market actually seems to focus on price over people and it doesn’t seem fair in my opinion. I also found the part about the Cambodian officials traveling to Washington interesting. They made cold calls to members of US Congress asking for a special trade deal in order to lower taxes on their clothing. This seems very desperate of them in my opinion and like they were trying everything they could to save jobs for their workers. Overall, this podcast act made me think about how complicated global trade is. Cambodia tried to be ethical by the looks of it but that alone wasn’t enough to compete. It made me question whether companies and governments truly value fair labor practices or if money usually comes first.
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