global value chain

A global value chain refers to the interconnected steps involved in producing and delivering a product or service across different countries. It starts with raw materials, moves through various stages such as manufacturing, assembly, and distribution, often leveraging the strengths of different regions. For example, a smartphone may be designed in the U.S., components produced in Asia, and assembled in another country. Each stage adds value, contributing to the final product's quality and cost. Understanding this chain helps businesses optimize efficiency, reduce costs, and respond to global market demands.