Global value chains .28GVCs.29 Value chain

cross border / cross region value chains

often multinational enterprises (mnes) developed global value chains, investing abroad , establishing affiliates provided critical support remaining activities @ home. enhance efficiency , optimize profits, multinational enterprises locate research, development, design, assembly, production of parts, marketing , branding activities in different countries around globe. mnes offshore labour-intensive activities china , mexico, example, cost of labor lowest.(gurría 2012) emergence of global value chains (gvcs) in late 1990s provided catalyst accelerated change in landscape of international investment , trade, major, far-reaching consequences on governments enterprises.(gurría 2012)

global value chains (gvcs) in development

through global value chains, there has been growth in interconnectedness mnes play increasingly larger role in internationalisation of business. in response, governments have cut corporate income tax (cit) rates or introduced new incentives research , development compete in changing geopolitical landscape.(leblanc et al.)

in (industrial) development context, concepts of global value chain analysis first introduced in 1990s (gereffi et al.) , have gradually been integrated development policy world bank, unctad, oecd , others.

value chain analysis has been employed in development sector means of identifying poverty reduction strategies upgrading along value chain. although commonly associated export-oriented trade, development practitioners have begun highlight importance of developing national , intra-regional chains in addition international ones.

for example, international crops research institute semi-arid tropics (icrisat) has investigated strengthening value chain sweet sorghum biofuel crop in india. aim in doing provide sustainable means of making ethanol increase incomes of rural poor, without sacrificing food , fodder security, while protecting environment.