Ahsanullah University of Science & Technology

Assignment on “Outsourcing of Telecommunication Networking”

Course No : MBA-631
Course Title : Marketing Management.
Course Teacher : Mr. S.K. Forid

Submitted By: Md. HosnyMohashin 11.02.52.008

Introduction

It has been argued for several years now that the phenomenon of ‘global production sharing’ through global value chains (GVCs), around which a substantial literature exists, has helped developing countries expand export-oriented manufacturing activity. GVCs represent the significant unit of organization of international production, wherein ‘lead firms’, largely multinational corporations (MNCs), coordinate production across international borders through extensive networks of suppliers spread across large numbers of countries. This has resulted in a significant change in the structure of international trade, leading to a domination of what has been referred to as the ‘trade in tasks’, that is, trade is no longer characteristically undertaken in goods, but rather in particular production segments (cut make-trim (CMT) versus the design brand market) of a production chain. The ‘trade in tasks’, empirically measured in terms of trade in intermediate goods, reflect this phenomenon, and the gains accruing to low- and middle-income countries in trade involvement are clearly seen here, with their share constituting more than 35 percent of the world’s intermediate goods trade during the latter half of the 2000s (Milberg 2004).

However, it has also been noted extensively that, despite increases in export shares, involvement in GVC-coordinated activities has often not led to any significant increase in value added from those activities over previous commodity-based export regimes because lead firms in global production networks