Global value chain restructuring in the trade of knocked down products

Abstract

Trade in knocked down products embodies the international division of labour and the distribution characteristics of the global value chains. The value chain of the trade in knocked down products is defined in this paper through the analysis of the process of the intra-product international division of labour. Firstly, the value chain of knocked down products is divided into two parts, i.e. the value chain of product design and production and the value change of product assembly and sale. Then, the necessary conditions are deduced to realize the reconstruction of the value chain. The tariff escalation policy of the importing country is the main reason for the disruption of the product value chain and the value shifting to the importing country. Finally, the areas of value chain disruption in the cases of various modes of trade in knocked down products are established. As a result, the research on the restructuring of the value chain in the trade in knocked down products will help companies choose a high value link in the value chain from the global distribution perspective.