438967041.edited.txt - A value chain is more than the...

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A value chain is more than the supply chain system. Therefore, organizations and countries evaluate the role and significance of value chain according to their requirements and objectives. The role of the value chain can also be enhanced when the matter relates to the global business environment (Gereffi, 2019). Global business environment and improvement in the demand and supply pattern of the countries play a most effective role. It helps countries to support organizations to do local and international business and enhance the per capita income of people as well as the GDP of the country (Nathan, Tewari and Sarkar, 2019). Global value chains in the context of international trade are analyzed with the help of the concept of the value chain. It comprises the activities of business which are used to introduce a product from the basic idea of the value chain with the help of its design, intermediate inputs, sourced raw materials, distribution, marketing, and final support to every customer. Correctly, the term such as global value chain (GVC) is used in developing development literature, when the activities coordinate across geographies (Marchi, Maria, and Gereffi, 2017). Global value chain considers every activity and people involves in the production of services and good and its distribution, global level supply, and supply chain (post-sales activities). GVC is also similar to Industry Level Value Chain however encompasses business activities at a global level. In this context, this paper analyses the relationship between the global value chain and wealth creation (GDP) and wealth distribution (per capita GDP). After this, this paper describes how the countries and organization evaluate the contribution of the GDP. GVC GVC plays the most effective role in the global business environment. Due to this, it contributes to the development of the international market. Trade based on the value-addition contributes to the GDP of the underdevelopment countries effectively in the place of the economy of the developed countries (Holste, 2015). Furthermore, the participation of the countries in GVCs associates positive growth in the per capita GDP. GVCs, therefore, have a direct impact nation’s economy, the rate of employment and wages & income as well as create opportunities for the development in the upcoming future (Adewole and Struthers, 2018). It is also a useful and essential mechanism for the developing countries in making improvement in operational capacities and enhancing their power of the production. It works with the help of increasing the technology adoption rate and the development of workforce skills (Wong, 2017). Thus GVC helps organizations in developing the foundations to upgrade the performance of industries for long-term. Gradin (2016) describes the limitation of the GVC approach for the global organizations as well as the countries. It is because of its contribution to the growth of wealth if the production in the country has a relatively low-value addition. It means if a country or the organizations are not adding more values
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