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.