globalisation and corporate strategies
Hi everybody we are going to present you our subjet which is Global value chains and patterns of value added trade and invesments.
To present you our topic i am going to give you a definition of Global value chains. So the GVCs describes the full range of operations that multiple firms and workers do to bring a product from its conception to its end use and beyond. Nowadays global value chains are the core notion of international trade and investment policy.
Now i present to you the trade which s increasingly driven by global value chains.
In our subject there is an important notion, the value added which is the wealth that has been produced.
Global trade in goods and services, represents 20 trillion dollars includes a significant amount of double counting. To give you an exemple to explain what is the double counting. We can say that raw material extracted in one country A may be exported first to a second country B for processing, then exported again to a manufacturing plant in a third C country which may then export it to a fourth D for final consumption.
The value of the raw material counts only once as a GDP contribution in the original country, but is counted several times in world exports.
The average foreing value added in exports in approximately 28%. That means that around 5 trillion of the 19 trillion in 2010 world exports of goods and services has been contributed by foreign countries for further exports and it thus "double counted" in global trade figures.
The remaining 14 trillion is the actual value added contribution of trade to the global economy.
GVCs lead to a significant amount of double counting, 28% because intermediates are counted several times in worlds exports but should be counted only once.
The solution : take into account only the final product and not successive stages of production.
To present you our topic i am going to give you a definition of Global value chains. So the GVCs describes the full range of operations that multiple firms and workers do to bring a product from its conception to its end use and beyond. Nowadays global value chains are the core notion of international trade and investment policy.
Now i present to you the trade which s increasingly driven by global value chains.
In our subject there is an important notion, the value added which is the wealth that has been produced.
Global trade in goods and services, represents 20 trillion dollars includes a significant amount of double counting. To give you an exemple to explain what is the double counting. We can say that raw material extracted in one country A may be exported first to a second country B for processing, then exported again to a manufacturing plant in a third C country which may then export it to a fourth D for final consumption.
The value of the raw material counts only once as a GDP contribution in the original country, but is counted several times in world exports.
The average foreing value added in exports in approximately 28%. That means that around 5 trillion of the 19 trillion in 2010 world exports of goods and services has been contributed by foreign countries for further exports and it thus "double counted" in global trade figures.
The remaining 14 trillion is the actual value added contribution of trade to the global economy.
GVCs lead to a significant amount of double counting, 28% because intermediates are counted several times in worlds exports but should be counted only once.
The solution : take into account only the final product and not successive stages of production.