Global Value Chains (GVCs)

Global Value Chains (GVCs) refer to the worldwide network of activities involved in producing a product, from raw materials to finished goods. Different countries and companies handle specific tasks—such as designing, manufacturing, or assembling—based on their expertise and cost advantages. This interconnected process allows goods to be created more efficiently and at lower costs, reflecting the globalized nature of modern trade. GVCs highlight how countries depend on each other, with value being added step-by-step across borders, ultimately resulting in the products consumers purchase in local markets.