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Global ProductionFirms, Contracts, and Trade Structure$
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Pol Antràs

Print publication date: 2015

Print ISBN-13: 9780691168272

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691168272.001.0001

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Made in the World

Made in the World

Chapter:
(p.3) 1 Made in the World
Source:
Global Production
Author(s):

Pol Antràs

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691168272.003.0001

This chapter gives an overview of the state of global production networks in the present age, particularly in the “slicing of the value chain” phenomenon, which refers to the gradual disintegration of production processes across borders. Another important characteristic of global production networks is that they necessarily entail intensive contracting between parties located in different countries and thus subject to distinct legal systems. In a world with perfect (or complete) contracting across borders, this of course would be of little relevance. Unfortunately, this is not the case at present, and from here the chapter examines the issues surrounding the use of contracts in international trade.

Keywords:   value chain, global production networks, globalization, contracting, international trade, production processes, legal systems

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