Global Value Chains
Global Value Chains (GVCs) refer to the interconnected processes involved in producing and delivering goods and services across different countries. Each step, from raw material extraction to manufacturing and distribution, adds value to the final product. For example, a smartphone might be designed in one country, components manufactured in several others, and then assembled and sold in yet another. GVCs highlight how economies are linked, showing that production can be spread globally, leveraging different skills, resources, and costs, ultimately influencing trade, jobs, and economic growth around the world.
Additional Insights
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Global value chains refer to the interconnected processes that companies use to produce goods and services across multiple countries. Each step in the chain, from sourcing raw materials to manufacturing and distribution, often occurs in different locations to take advantage of specific resources, skills, or cost efficiencies. For example, a smartphone might have components made in one country, assembled in another, and sold worldwide. This system allows businesses to optimize their operations and cater to global markets, but it also means that events in one region can impact the entire supply chain.