the major concerns related with GVC are i Unequal distribution ii Synchronization of economic activi...........

Economic and Social Issues Liberalization, Privatization and Globalisation

World bank released World Development Report titled “Trading for Development in the Age of Global Value Chains”. A value chain refers to the “full range of activities that firms and workers do to bring a product from its conception to its end use and beyond”. It involves activities like production of a good or service and its supply, distribution, and post-sales activities etc. When the value chain is distributed across different firms in different countries, it means that these activities are divided among different countries. This phenomenon where value chain is spread across the globe- it is called GVC. For example, a bike assembled in Finland with parts from Italy, Japan, and Malaysia and exported to the Arab Republic of Egypt is a GVC. For example, a bike assembled in Finland with parts from Italy, Japan, and Malaysia and exported to the Arab Republic of Egypt is a GVC.GVCs are vehicles for technology transfer: Unlike in traditional trade in which firms in different countries compete, GVCs are networks of firms with common goals. GVCs involve longer-term firm-to-firm relationships. This nature of GVCs makes them a particularly powerful vehicle for technology transfer and sharing know-how along the value chain.

the major concerns related with GVC are

i Unequal distribution

ii Synchronization of economic activity across countries

iii Costlier Policy uncertainty

iv Poor technology transfer

Select the correct answer using the code given below

i. and ii only

i. and iii only

ii, iii and iv only

i. ii and iii only

all of the above

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Explanation:

Concerns associated with GVCs

Gains from GVC participation are not distributed equally across and within countries. Inequalities arise in the distribution of capital and labor, between skilled and unskilled workers as well as between male and female workers and geographically within countries.
Synchronization of economic activity across countries: When production in one country relies on inputs from its trading partners, the economic conditions in other countries affect its domestic activity. This affects how shocks are transmitted across borders.
Policy uncertainty is costlier under GVCs: GVCs amplify the costs of sudden increases in trade policy uncertainty because firms may wait to invest in relationships with foreign suppliers until the uncertainty is resolved.