What are Global Value Chains?
Global value chains (GVCs) include the full range of activities that are required to bring a product from its conception to its end use and beyond (e.g., design, production, distribution). Value chain activities can be contained within a single firm or divided among different firms, and can be contained within a single geographical location or spread over wider areas. For example, firms are increasingly outsourcing some of their activities to third-parties, locating parts of their supply chains outside their home country (offshoring), and partnering with other firms through strategic alliances and joint ventures.
Why are They Important?
Firms are increasingly organizing their production into global value chains (GVCs). This poses challenges and opportunities for the Canadian economy and Canadian businesses. Therefore, government policy makers must develop a solid understanding of GVCs and their economic implications for Canada. In addition, government policy must reflect the evolving realities of today's GVCs to facilitate the necessary adaptation by firms and industries.
Global Value Chains
