By Juan S. Blyde

The aim of this record is to check the level to which international locations in Latin the United States and the Caribbean perform worldwide price chains and what are the drivers of such participation. creation methods were more and more fragmented world wide. for instance, the construction of the Boeing 787 Dreamliner includes forty three providers situated in one hundred thirty five destinations around the world. there are lots of examples just like the Dreamliner, from the 451 components that pass into the iPod to the fewer technologically extensive yet nonetheless common multi-country creation of a Barbie doll. All this displays major adjustments within the method international creation is being reorganized throughout nationwide borders. that's, for lots of items, creation has develop into a multi-country technique within which diverse phases are performed in really expert crops in numerous components of the realm. international locations which specialise in various phases of the creation strategy are hence associated by means of those worldwide price chains. For constructing nations, a transparent chance from the continual overseas fragmentation of construction arises within the kind of partaking in actions that have been nearly no longer opened to them long ago. for that reason, the foreign fragmentation of construction presents possibilities for exchange diversification, a topic that may be of specific significance for Latin the US and the Caribbean because the region’s export base is generally hugely centred in a couple of industries and especially biased in the direction of natural-resource extensive sectors. the purpose is to spot even if there's coverage house for imposing concepts that let nations to enhance their place in local and international worth chains.

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Extra info for Synchronized Factories: Latin America and the Caribbean in the Era of Global Value Chains

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In other words, even after accounting for differences in income per capita, the participation of most countries in the region seems to be low. Evidence from Trade in Services International trade in services is a growing trend in global commerce. 12 12 Note that the offshoring of services does not involve all trade in services. Some trade in services might not be related to the fragmentation of production. Evidence from Trade in Services 27 Computer and Information Services 24 Exports of CI Services (in logs) 12 15 18 21 22 BRA ARG 19 CHL COL CRI PER PAN URY VEN PRY DOM GTM 16 NIC SLV HND BOL CRI ARG BRA URY CHL COL PER PAN GTM DOM VEN HND PRY BOL SLV 13 Exports of BP&T Services (in logs) 25 Business, Professional and Technical Services 6 7 8 9 10 GDP per capita (in logs) 11 6 7 8 9 10 GDP per capita (in logs) 11 Fig.

Even within the group of countries participating in downstream supply chain segments, some economies specialize in value chains of low technological content while others focus more on high-technology segments. In general, however, the various indicators confirm the general perception that Latin America tends to participate less than other regions in global value chains, particularly in value chain segments related to the manufacturing sector. Two obvious questions arise from these findings: Can countries in the region increase their participation in global value chains?

Bombardier was attracted to the cluster by the massive transport infrastructure investments made by the state government. Nevertheless, a number of logistics issues also needed to be addressed to guarantee smooth operations of the company’s supply chain. For instance, when Bombardier started its operations in Mexico, the federal customs office was located in downtown Querétaro, not at the airport. The authorities initially insisted that every component be brought from the airport to downtown for customs clearance, and then shipped back to the airport, where the Bombardier factory is located.

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