The value chain is a process or those activities that a company involves in production marketing and the after sale service. It is a concept that is derived from the business management to create and sustain performance in a firm. In analyzing the international trade or market, comes in the global value chains which entail those activities that required bringing forth new products through its design. It involves all the individuals participating in the process of production of goods and services. The rise in the global value chains in the recent past has led to the developments in the international markets. Several types of research conducted shows that the global value chains can highly benefit the economy of the domestic values. In essence, through the use of the input and output, one can easily understand that there is a structural change in the domestic trading if the global value chain is added.
Manager of the companies that involves the value chains is hectic and hard since, there are several supply chains which they are supposed to count in the operation, hence, they might get late to delivering the final goods and services. Employing the value chain system is associated with various challenges including; reduced cost, risks, and the increased transparency in the business or the entire company (Antràs & Chor, 2013).
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Following the increase of varying fragments of values across the world, different countries perform varying global value chains. Therefore, an alternative measure of the worker's activities in the GVC of certain products differs with the particular products. In essence, there is a distinction that is made between the preproduction and the post production activities. Therefore, it is noted that the activity measure is basing on the tasks performed in the global value chains which show the improvement of the economy. It happens if a company or markets specialize in the pre-production and post-production stages when involving production activities.
References
Antràs, P., & Chor, D. (2013). Organizing the global value chain. Econometrica , 81 (6), 2127-2204.
Hintze, S. (2015). Value chain marketing: A marketing strategy to overcome immediate customer innovation resistance .
