Global Value Chain or sometimes referred to as Global Supply Chain (GVCs) are possibly the world’s strongest drivers of productivity growth, job creation, and increased living standards for both countries and companies.
- GVCs make a significant contribution in international growth and development. Value-added global trade contributed about 30% to the GDP of developing countries.
- GVCs are coordinated across geographies.
- Companies and countries that embrace them have proven to grow faster, import skills capital and technology, and boost employment.
- A Global Value Chain has proven to sell products and do marketing on a low cost digital marketing globally.
- With GVC-driven development, countries over time generate growth by moving to higher-value-added tasks and by embedding more technology and know-how in all aspects of their business helping to leap-frog their global competitors.
Developing countries are often the largest long term winner in this global shift
- It is highly recognized that the GVC-driven success of nations such as China and India (that have made tremendous inroads in growth) have significantly boosted both their individual companies and their country’s global competitiveness.
- It’s surprising that very few developing countries have fully embarked on the GVC revolution, but they still face challenges in aligning GVCs with their national development strategies.
- It is important for companies and small businesses to press hard and not wait for their government to move forward, as many countries fail to recognize and implement the needed changes.
- Global Value Chains are networks of production and trade across countries. One open example for companies is Shop The Globe.
- GVCs became the crucial condition for sustained accelerated growth.
- Simple strategies can help both developing businesses and countries to increase their participation in GVCs.
The concepts of a global value chain (GVC) and global supply chain refer to the people, roles and activities involved in the production of goods and services and their supply, distribution, and post-sales activities when those activities must be coordinated across geographies. GVC is similar to Industry Level Value Chain but encompasses operations at the global level.
Is it time that both countries and companies understand the global research that shows that utilizing Global Value Chains have proven to be one of the single best, and most affordable ways to raise both companies profits and also a country’s working class while also improving local manufacturing technologies.
Possibly the simplest way to improve the economy, according to studies, is providing a truly global value chain (GVCs) – where one’s goods could be shown globally on for example the fast growing platform ShopTheGlobe – as it is proven GVC raises incomes, provides jobs and reduces poverty.