Question

In terms of the global value system, when Kodak shifted manufacturing to China, what position did China then take in the system, relative to the U.S.

Answer 1

Answer: b. Upstream

Explanation:

The Upstream part of a company's value chain is the part closest to the suppliers and the raw materials they supply to the firm while the downstream relates to how the goods are distributed and sold after produced.

As such, the firm's manufacturing plants are closer to its Upstream value chain portion. When Kodak therefore shifted manufacturing to China, it made China more upstream than the United States as China now dealt more with Kodak suppliers and inputs than the US, who were now more downstream as the consumers.