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Complex Commodity Chains

Definition

These are the series of steps involved in producing and distributing goods to consumers. It includes everything from raw material extraction to the final product reaching the consumer.

Analogy

Think of it like a relay race, where each runner (or step) is crucial for getting the baton (or product) to the finish line (or consumer). If one runner stumbles or drops out, it affects the entire race.

Case Studies

case studies

Impact

Commodity chains influence local economies by determining labor demand and shaping trade relationships. They can lead to urbanization as production hubs grow and affect migration patterns as workers move towards manufacturing centers. In economic development, they highlight inequalities within global trade systems.

Related terms

Supply Chain: This is a network between a company and its suppliers to produce and distribute a specific product.

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.

Outsourcing: The business practice of hiring party outside a company to perform services and create goods that were traditionally performed in-house by the company's own employees and staff.