Global Value Chains: Impacts and Implications - Center on ...

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A common definition of GVCs A global value chain describes the full range of activities undertaken to bring a product or service from its conception to its end use <strong>and</strong> how these activities are distributed over geographic space <strong>and</strong> across international borders* * Adapted from the global value chains initiative at Duke University 8
How GVCs fit into trade theory Why Firms Trade Classical Ricardo Differences in Technology H-O New Trade Theory Krugman Heterogeneous Firms <strong>Global</strong> <strong>Value</strong> <strong>Chains</strong> Fenstra <strong>and</strong> Hanson Grossman <strong>and</strong> Rossi-Hansberg Differences in Endowments Scale, Trade Costs Various IP, Management, Technology Activities Tasks Source of Advantage Location – Often Country Industry Firm Within Firm 9
Page 1 and 2: Global Val
Page 3 and 4: What Is A Global <
Page 5 and 6: Headquarters Corporate Services Fin
Page 7: How GVCs Fit In 7
Page 11 and 12: Why this matters Global</st
Page 13 and 14: 1000 900 800 700 600 500 400 300 20
Page 15 and 16: 90 80 70 60 50 40 30 20 10 0 Percen
Page 17 and 18: Measuring GVCs 17
Page 19 and 20: Existing measures A Suite of Measur
Page 21 and 22: Capital Intermediate Consumption BE
Page 23 and 24: Percent 25 20 15 10 5 0 …especial
Page 25 and 26: Headquarters (HQs) Case studies of
Page 27 and 28: Canada hosts the HQs of few global
Page 29 and 30: Percent 50 40 30 20 10 0 R&D is glo
Page 31 and 32: Offshoring and Out
Page 33 and 34: 5 4 3 Inshoring and</strong
Page 35 and 36: Offshoring and out
Page 37 and 38: Wrap-up GVCs is trade, but at a mor

Global Value Chains: Impacts and Implications - Center on ...

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