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Why policy makers should pay attention to the concept of massive modularity
https://blogs.worldbank.org/developmenttalk/why-policy-makers-should-pay-attention-concept-massive-modularity-example-mobile
Recently, policy makers have taken a deep interest in global value chains (GVCs), with a view to making them more resilient and robust in most countries’ post-pandemic recovery plans. A central assumption in all policy proposals seems to be that the classic GVC is the relevant unit of analysis: each “lead” firm organizes a pipeline of suppliers (its supply chain) as needed to produce a good or service. In such conventional GVCs, it is easy to identify the critical inputs and bottlenecks that create vulnerability to disruption. But in industries characterized by what we call “massive modularity”, this becomes extremely difficult.
https://blogs.worldbank.org/developmenttalk/why-policy-makers-should-pay-attention-concept-massive-modularity-example-mobile
Recently, policy makers have taken a deep interest in global value chains (GVCs), with a view to making them more resilient and robust in most countries’ post-pandemic recovery plans. A central assumption in all policy proposals seems to be that the classic GVC is the relevant unit of analysis: each “lead” firm organizes a pipeline of suppliers (its supply chain) as needed to produce a good or service. In such conventional GVCs, it is easy to identify the critical inputs and bottlenecks that create vulnerability to disruption. But in industries characterized by what we call “massive modularity”, this becomes extremely difficult.
Paper: Price-Setting Power in Global Value Chains
https://link.springer.com/article/10.1057/s41287-022-00543-z
This paper calls for integrating price-setting power and related uneven exposure to price risks into the analysis of governance in global value chains (GVCs) as it adds to other power dimensions in producing unequal distributional outcomes. This is shown for the cocoa GVC, in which—unlike in today’s mostly liberalised market structures—the world’s top cocoa-producing countries, Côte d’Ivoire and Ghana, pursue price stabilisation measures. These measures address intra-seasonal producer price volatility, and recent collaboration has achieved a living-income differential on top of export prices, but such measures do not shield export and producer prices from inter-seasonal variations in world prices determined on commodity derivatives markets. Based on interviews with actors along the cocoa GVC, we argue that this is related to the price-setting power of ‘grinder-traders’ and the key role of financial hedging and trading on commodity derivatives markets in their business strategies.
From
https://link.springer.com/article/10.1057/s41287-022-00543-z
This paper calls for integrating price-setting power and related uneven exposure to price risks into the analysis of governance in global value chains (GVCs) as it adds to other power dimensions in producing unequal distributional outcomes. This is shown for the cocoa GVC, in which—unlike in today’s mostly liberalised market structures—the world’s top cocoa-producing countries, Côte d’Ivoire and Ghana, pursue price stabilisation measures. These measures address intra-seasonal producer price volatility, and recent collaboration has achieved a living-income differential on top of export prices, but such measures do not shield export and producer prices from inter-seasonal variations in world prices determined on commodity derivatives markets. Based on interviews with actors along the cocoa GVC, we argue that this is related to the price-setting power of ‘grinder-traders’ and the key role of financial hedging and trading on commodity derivatives markets in their business strategies.
From
Why are global commodities so much cheaper in poorer countries?
https://ask.metafilter.com/367917/Why-are-global-commodities-so-much-cheaper-in-poorer-countries
For example: In San Francisco, USA, a gallon of gas is $5.50 and a seared tuna entree at an upscale restaurant is $35. In Medellin, Colombia, the respective prices are $2.00 and $7. Gas and tuna not local goods, there's a global market for them. Why are they cheaper in poorer countries?
https://ask.metafilter.com/367917/Why-are-global-commodities-so-much-cheaper-in-poorer-countries
For example: In San Francisco, USA, a gallon of gas is $5.50 and a seared tuna entree at an upscale restaurant is $35. In Medellin, Colombia, the respective prices are $2.00 and $7. Gas and tuna not local goods, there's a global market for them. Why are they cheaper in poorer countries?