production networks

Production networks are interconnected systems where different businesses collaborate to create a product. Each company in the network specializes in a specific part of the production process, such as sourcing materials, manufacturing, or assembly. For example, one company might supply components, another manufactures them, and a third assembles the final product. This collaboration increases efficiency, reduces costs, and allows companies to focus on their strengths. Overall, production networks help create complex products by leveraging the expertise and resources of various firms across different regions or countries.