Authors: John Smith
Addresses: Faculty of Arts and Social Sciences, Kingston University, Penrhyn Road, Kingston upon Thames, Surrey KT1 2EE, UK
Abstract: This article argues that financialisation and outsourcing, neoliberal globalisation's two defining transformations, interact so powerfully that neither can be understood separately from the other. It further argues that the transformations in the sphere of production are primary, and that the global shift of production processes to low-wage countries was driven by the desire of northern TNCs to cut production costs in order to counter the falling rate of profit, resulting in a deepening of capitalism's imperialist and parasitic character. Understanding the relation between financialisation and outsourcing is key to understanding why the global crisis heralded by the 1987 stock market crash did not erupt for another two decades, why this crisis has its roots not in finance but in capitalist production, to understanding the form and dynamics of this crisis, and why it marks the beginning of a protracted global depression that cannot be resolved within capitalism.
Keywords: outsourcing; financialisation; globalisation; financial crisis; imperialism; exploitation; global labour arbitrage; Marx; value theory; capitalist production; economic depression; TNCs; transnational corporations; production costs.
International Journal of Management Concepts and Philosophy, 2012 Vol.6 No.1/2, pp.19 - 44
Available online: 03 Jun 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article