Li & Fung, Ltd.: An Agent of Global Production

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The trade theory that deals with international production fragmentation assumes that producers in different parts of the world specialize in segments of various value chains such that the final price of each product is as low as possible. The slicing of a value chain into segments to be allocated to producers in different countries depends on technical feasibility and on the costs of linking the successive production processes. In practice, how do producers in different countries determine their respective positions along the value chain?
Original languageEnglish
Title of host publicationGlobal Production and Trade in East Asia
EditorsLeonard K. CHENG, Henryk KIERZKOWSKI
PublisherSpringer US
Number of pages7
ISBN (Electronic)9781461516255
ISBN (Print)9781461356479
Publication statusPublished - 2001
Externally publishedYes

Bibliographical note

I would like to thank Dr. William K. Fung for his assistance in the preparation of this case study, in particular for his insights about supply chain management.


  • Supply Chain
  • Comparative Advantage
  • Global Production
  • Multinational Firm
  • Trading Company


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