Practice question · Multiple choice
Why did global value chains fragment production across countries?
Hints
- Each stage locates where its own cost-quality balance is best.
- Fragmentation is an optimisation, not a requirement.
Show the answer
B. Each stage sits where its cost-quality mix is best
Why
Fragmentation is an optimisation: locate design where skills are high, assembly where labour is cheap, logistics where infrastructure is good. Falling transport and communication costs made this cost-effective.
Practise The Second Globalization
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