One of the main features of modern societies is an enormous expansion of economic interdependence. Today the world economy operates through the exchange of capital, labour, raw material and technology. We all are dependent on large number of workers from all over the world for the s. goods and services we consume. In a globalised economy work is decentralised. It is the growing competition between firms and countries that makes it essential to keep production flexible. This means creation of a global chain of production in which different activities of the production take place in different parts of the world.

For example, raw material may be processed in one country, where it is cheaper and the product may be marketed for consumption in a totally different country. Transnational corporation like Coca- Cola, Colgate, Palmolive, Kodak, General Motors play a crucial role in creating a flexible economy which operation across the globe.

One illustration of the global commodity chain can be found in the manufacturing of the most popular Barbie doll. The first doll was made in Japan in 1959 when wages were low, as wages rose in Japan, Barbie moved to other low wage countries in Asia. Ethylene needed for Barbies plastic body is created in Saudi Arabia. Ethylene is converted to PVC pellets which are shipped to factories in China, Malaysia and Indonesia where actual moulding of the body takes place. Barbies gets her nylon hair from Japan and cotton dresses are made in China.

Barbie is designed in United States where most of the profits are made . But only physical aspects of Barbie that is made in USA is her cardboard packaging along with some of the paints and oils that are used to decorate the doll.