GVCs

Mr. Naoyuki Haraoka's picture

ASEAN is No “Plan B” for US-China Trade War Disruption of Japanese MNC GVCs

A quarter of Japanese manufacturing is done overseas with the subsidiaries of Japanese multinational corporations (MNCs) venturing overseas to extend global value chains (GVCs) that begin in Japan. Under the resulting structure, the majority of Japanese manufacturing exports head towards overseas subsidiaries with capital ties to headquarters in Japan.

Mr. Naoyuki Haraoka's picture

Infrastructure for Global Value Chains

The nature of the utilization of global value chains (GVCs) is a key element in determining the type of activity of multinational enterprises (MNEs). At the most primitive stage, trade in agricultural, mineral, or light-industrial products is dominant and relatively slow paced. Thus, there is little time sensitivity. At the second stage, business operations are more sophisticated and time sensitive.