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CONCEPT OF GLOBAL NETWORKS AND VALUE CHAINS

Автор: Sveta on .

UDC 339.5:330.13
 
Nataliaa CHERKAS,
PhD in Economics, Associate Professor,
Doctoral Student at the International Economics Department of
State Higher Education EstablishmentNational Economic University named after Vadym Hetman

 
CONCEPT OF GLOBAL NETWORKS AND VALUE CHAINS
 
Background. Despite the rapid economic growth observed in many countries and entire regions, the profit and the benefits of globalization are unevenly distributed between the coun­tries and social layers. In such circumstances, the development and practical implementation of concepts of international trade growth, based on the effective use of the advantages of participa­tion in global production networks (GPN) and global value chains (GVC) becomes highly important.
The aim of the study is to define the basic features of value chains and to analyze their determinants, critical resources, the organization and the structure as well as existing concepts of the functioning of GPN and GVC in conditions of globalization.
Materials and methods. The information sources used in this review included research journals, monographs, publications of international institutions concerning GVC and GPN. The following methods have been used for the study: historical and logical, induction, deduction, synthesis, comparative and system analysis.
Results. The study reveals the basic features, preconditions, stages of development and importance of global networks and value chains. Characteristics and critical resources of GVC and GPN are systematized. The paper reviews the evolution of scientific appro­aches to the research of global production networks. The visualization of global trade networks is presented. The study generalizes the specifics of the companies’ competi­tiveness development in the system of GPN and GVC, based on the balance of costs/oppor­tunities, market development support and financial discipline.
Conclusion. GPN and GVC are the most important organizational platforms, which provide coordination of world production, global trade and investments. The new GPN 2.0 theory focuses on the structural competitive dynamics of global networks and allows to explain the interaction of various aspects of the company’s competitiveness. The further research will cover the study of the global competitiveness’s factors of domestic companies, based on the effective mechanisms of participation in GPN and GVC.
 
Keywords: global production networks, global value chains, globalization, inter­national market.
 
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