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?
|Title of host publication||Global Production and Trade in East Asia|
|Editors||Leonard K. CHENG, Henryk KIERZKOWSKI|
|Number of pages||7|
|Publication status||Published - 2001|
Bibliographical noteI 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