In the quest to cut costs, corporations were able to shop around the world for components,
raw materials and new markets. In doing so they brought new countries into the
global system, generating new trade growth and giving rise to the trade system outlined
in Figure 10.1. On the left are raw materials, which are shipped by sea to processing
plants, often near the markets; in the centre are the assembly plants, and on the right the
wholesalers and retailers. As sea transport costs fell, new opportunities for manufacturing
were opened up, often involving multiple sea voyages. For example high-technology
components are shipped to an assembler in a low-cost economy, processed, then
exported as finished goods. This type of classic trade arbitraging is made possible by
the transport network.