Global Value Chains

Global value chains (GVCs) have expanded dramatically around the world in the past two decades on the back of trade liberalization and lowering of costs of moving goods. How to create ever more seamless value chains is a top consideration for corporate and policy leaders around the world. After all, implying large-scale investments by corporate giants, GVCs open opportunities for job-creation and local technology upgrading in developing as well as advanced economies, all of which have mounted major programs to tap foreign investors.

Also small and mid-size firms can benefit as suppliers to corporate giants. There can be various benefits: global companies are exacting, pressuring suppliers to improve quality, drive down cost, specialize, and constantly adapt and innovate. SME suppliers can also benefit from the information flows, technology transfer and learning opportunities with the multinational and/or its lead supplier. In addition, supplying a large customer can enable an SME to produce larger volumes and harness scale economies.

Nextrade Group is a thought leader on GVCs - both on the global and national trade and infrastructure policies required to attract and facilitate corporate value chains, and on the practical ways to further SMEs' quality participation into GVCs. Our CEOs is part of a 20-member global expert group on GVCs, and Nextrade has recently worked with the Peterson Institute and Inter-American Development Bank to remove infrastructure bottlenecks to GVCs especially in Latin America, and to help the regional SMEs access and make most of supplier relationships with global companies.