GVC (global value chain) theory

Global Value Chain (GVC) theory explains how different stages of producing a product—like design, manufacturing, and marketing—are spread across multiple countries. Companies coordinate these tasks internationally to take advantage of specific skills, costs, and resources. This interconnected process influences global trade patterns, economic development, and job distribution, showing how global production is a collaborative effort across borders. GVC theory helps us understand how value is added at each stage and how global forces impact local economies and industries.