How do global value chains relate to globalization?
How do global value chains relate to globalization? Globalization has caused many businesses to divide their products or services into components. Instead of producing the components themselves or obtaining them from domestic suppliers, businesses outsource certain aspects of the work to other countries. Economists call this co-dependency a Global Value Chain (GVC).
What is an example of a global chain?
For example, if a company sources raw materials in China, manufactures the product in India and sells it to customers in North America, its supply chain is global.