Does the Global Value Chains Theory Accurately Represent the Dynamics and Operations in the Global Smartphones Industry?

Topic

Does the Global Value Chains Theory Accurately Represent the Dynamics and Operations in the Global Smartphones Industry?

Instructions

Select one of the four international business theories – global value chains, global production networks, the global factory, or the platform economy – and apply it to a specific industry of your choosing. Once you have chosen your theory and industry, the essay should be written in response to the following question:
“Does the [your selected theory] theory accurately reflect the current nature of the [your selected industry] industry?”

Answer preview

Globalization in the wake of the advances in communication technologies, imply that multinational firms are able to engage in business transactions with partners and customers beyond the home country boundaries (Coe, Dicken and Hess, 2008). The result of these changes is that international production and trade increased, with multinational firms being able to efficiently and productively operate subsidiaries and affiliates in different countries. In an effort to maximize business operational efficiency and profits in an increasingly competitive globalized market, firms strive to organize their global supply chains in a way that they can maximize value, while managing costs within reasonable measures (Kaditi, 2012). It is at this point that the theory of global value chains (GVCs) becomes relevant.

Word count: 4155