Economic integration agreements and the location of vertical FDI

Juan Blyde, Alejandro Graziano, Christian Volpe Martincus 13 May 2014

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Production processes are becoming increasingly fragmented. Many goods that were manufactured in single countries are now sliced in different bundles assigned to plants around the globe, giving rise to what is commonly known as global value chains (GVCs). The emergence of GVCs is allowing nations to industrialise much more rapidly by joining international production networks rather than by building entire supply chains at home. This has been the path to industrialisation taken by some Asian countries and, more recently, by some eastern European countries as well (Baldwin 2012).

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Topics:  International trade

Tags:  trade agreements, vertical FDI, global value chains

Trade collapse and vertical foreign direct investment

Kiyoyasu Tanaka 07 May 2009

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The US subprime mortgage crisis inflicted high capital losses for domestic and foreign financial firms that had invested in securities backed with US real estate loans. This triggered a severe credit crunch in the US, which grew into a full-blown financial crisis of global proportions and later ended up affecting the entire global economy. The prime characteristics of the current global economic crisis have so far been plummeting stock and equity prices, skyrocketing bank failures, and a sudden collapse in international trade.

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Topics:  International trade

Tags:  Japan, vertical FDI, trade collapse

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