How global value chains open opportunities for developing countries


Global value chains break up production processes so different steps—for building your smartphone, your TV, or your car—can be carried out in different countries.

More than two-thirds of world trade today takes place within value chains that cross at least one border during production, and often many borders.

Global value chains have been a boon to developing countries because they make it easier for those countries to diversify away from primary products to manufactures and services.

In the past, a country had to master the production of a whole manufactured product in order to export it.

With value chains, a country can specialize in one or several activities in which it has comparative advantage.

Source: How global value chains open opportunities for developing countries

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