GLOBAL VALUE CHAINThe value chain describes the full range of activities that firms and workers perform to bring a product from its conception to end use
and beyond.
R&D RAW MATERIAL
COMPONENT NETWORK
PRODUCTION NETWORK
EXPORT MARKETING
FOREIGN DIRECT INVESTMENT
• A long term investment by a non-resident entity • Exerts substantial management control • By either setting up a subsidiary company, acquiring
shares (usually 10% or more as specified by OECD) or through the formation of a joint venture or undergoing a merger.
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METHODOLOGY
• 2 databases World Investment Report, 2013 (UNCTAD) fDi Markets• Period under study (2003-12)• FDI– Mergers & Acquisitions (Purchase/sale of
existing equity) & Greenfield Investments (New investments)
POLICY RECOMMENDATIONS
• Garment and Textiles – High employment generating sector
• FDI will add to the capital of the countries• Required for investment, new technology, research
and best practices• Supportive policies required – reduce regulation,
bureaucracy, improve absorptive capacity• Border Area Promotion – Complementary Factor
Endowment• Reduce Service Link Costs