ABSTRACT
Global Value Chains (GVCs) are the face of globalised production now. The last few decades have seen the emergence of the international division of labour in the form of GVCs. Firms located in different parts of the world undertake different aspects of production and distribution of a commodity. A value chain refers to all the value adding activities in the production and distribution of a commodity undertaken by different firms but linked together. Value chains can exist within and across countries. The emerging economies saw a rapid spread of the automobile industry in the 1990s. The value chain in the automobile industry is usually described by reference to a number of tiers. The supply chain is such that ‘Tier 1 suppliers’ are those selling directly to the car makers or assemblers and ‘Tier 2’ suppliers are those selling directly to the ‘Tier 1’ firms, and so on.
