New Drivers OF GLOBAL VALUE CHAINS

By van der Geest, Willem | International Trade Forum, October 1, 2010 | Go to article overview

New Drivers OF GLOBAL VALUE CHAINS


van der Geest, Willem, International Trade Forum


The long-term impact of the changing trade landscape on global value chains is being shaped by changes in standards regimes, exchange rates, investment flows and other key determinants such as climate change. While trading with fast-growing emerging economies such as China, India and Brazil will become increasingly important, the question remains as to Whether this will create export opportunities for other developing countries or merely divert trade away from the Organisation for Economic Co-operation and Development (OECD) countries towards thé emerging economies.

The proliferation of standards

Across the QECD countries, there has been a prolifération of standards across three families of standards, including:

1. Private sector standards

2. Governmental regulation

3. Responses to voluntary civil society initiatives.

Private sector standards are at the core of business^to-business operations. Without them global value chains simply cannot function. Driven by buyers, they lay down detailed product specification and required key performance indicators, such as zero-defect components, to be achieved by suppliers, as well as their subcontractors. The number Of private standards is bound to increase. In its 2010 flagship report on Market Access, Transparency and Fairness m Global Trade, ITC calls for greater transparency in private standards to ensure that these do. not become burdensome barriers to trade, especially for developing country exporters.

Governmental standards primarily reflect concerns about health and safety. Emerging economies are likely to adopt regimes similar to those in OECD countries in the short to medium term. Therefore, any strategy by developing country exporters to supply substandard products to emerging economies is likely to be risky and short-lived. But process standards, for example about traceability, may be less onerous, enabling new export opportunities.

Voluntary standards requirements are likely to be less restrictive in emerging markets even for high-margin market segments such as organic foods or timber products. While OECD countries are increasingly adopting detailed process standards, this is less likely to be the case in the emerging and the so-called 'Next Eleven' economies.

In summary, newly emerging markets will operate with less specific standards, creating new outlets and opportunities for trade expansion among exporters in developing countries.

Exchange rates

Currency realignments, notably a weaker United States dollar and a relatively stronger Chinese yen and Indian rupee, may provide competitive advantages for exporters from other developing countries.

Other developing country exporters may find it somewhat easier to compete with, for example China and India in third markets. With stronger currencies, the import demand in the emerging economies will increase. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

New Drivers OF GLOBAL VALUE CHAINS
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.