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Synchronized Factories - Latin America and the Caribbean in the Era of Global Value Chains (Paperback, 2014 ed.)
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Synchronized Factories - Latin America and the Caribbean in the Era of Global Value Chains (Paperback, 2014 ed.)
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The objective of this report is to examine the extent to which
countries in Latin America and the Caribbean participate in global
value chains and what are the drivers of such participation.
Production processes have been increasingly fragmented worldwide.
For example, the production of the Boeing 787 Dreamliner involves
43 suppliers located in 135 locations around the globe. There are
many examples like the Dreamliner, from the 451 parts that go into
the iPod to the less technologically intensive but still widespread
multi-country production of a Barbie doll. All this reflects
significant changes in the way world production is being
reorganized across national borders. That is, for many goods,
production has become a multi-country process in which different
stages are carried out in specialized plants in different parts of
the world. Countries which specialize in different stages of the
production process are thus linked by these global value chains.
For developing countries, a clear opportunity from the continuous
international fragmentation of production arises in the form of
participating in activities that were virtually not opened to them
in the past. Therefore, the international fragmentation of
production provides opportunities for trade diversification, an
issue that can be of particular importance for Latin America and
the Caribbean as the region's export base is in general highly
concentrated in a few industries and particularly biased towards
natural-resource intensive sectors. The aim is to identify whether
there is policy space for implementing strategies that allow
countries to improve their position in regional and global value
chains.
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