GVCs (Global Value Chains)

Global Value Chains (GVCs) refer to the international process of producing goods or services, where different stages—such as design, manufacturing, assembly, and marketing—occur across multiple countries. Companies break down production into specialized tasks and outsource them globally to optimize costs, access expertise, or access new markets. This interconnected system allows products to be assembled from components made around the world, creating complex networks of cooperation. GVCs enable more efficient production but also link economies closely together, making industries and countries sensitive to changes in global economic conditions or disruptions.