GVC (Global Value Chain)

A Global Value Chain (GVC) refers to the worldwide network of businesses and activities involved in producing a product or service. It includes everything from designing and sourcing raw materials to manufacturing, marketing, and distribution, often spread across multiple countries. GVCs allow companies to specialize in specific tasks, leverage cost efficiencies, and access global markets. This interconnected process enhances productivity and innovation but also means that economic changes in one part of the chain can impact the entire system. Overall, GVCs highlight how closely connected the world's economies are in today's globalized production and trade.