report_merged for our school Southway college of technology

Reports

1. Trade Policy and Competitiveness:
The Philippines in Global Value
Chains

2. MEMBERS
CELSO MALAZARTE
DANILLE MIRO
QUEENIE OLIVER
GERALD PIAPES
BLEENICE PRIETE
ARLIE MAE ROXAS
ARNEL SANSAIT
DECIRE ANN TEOLA

3. A. Definition of GVCs
B. The Philippine role of GVCs
A. Upgrading in GVCs
B. Policy recommendation
- investments in skills development
- infrastructure, trade facilitation
CONTENT
1. Understanding Global Value Chains (GVCs)
2. Strategies for Enhancing GVC Participation

4. DEFINITIONOFGVCs

5. GLOBAL VALUE CHAINS
•Participation in global value chains (GVCs), the international fragmentation of production,
can lead to increased job creation and economic growth. In order to reap the gains from
value chain participation, countries must put in place the right kind of trade and
investment policies. The COVID-19 pandemic has highlighted the urgent need to
understand the dependency of many countries on suppliers across the world. The World
Bank Group is helping developing countries understand the role that GVCs can play in
delivering growth, increasing regional and global integration, and managing external
shocks.

6. WHAT ARE GVCS?
•Companies used to make things primarily in one country. That has all changed.
Today, a single finished product often results from manufacturing and assembly in
multiple countries, with each step in the process adding value to the end product.
•Through GVCs, countries trade more than products; they trade know-how, and
make things together. Imports of goods and services matter as much as exports
to successful GVCs.

7. WHAT ARE GVCS
•GVCs integrate the know-how of lead firms and suppliers of key components
along stages of production and in multiple offshore locations. The international,
inter-firm flow of know-how is the key distinguishing feature of GVCs.
•How countries engage with GVCs determines how much they benefit from them.

8. WHY ARE GVCS IMPORTANT FOR GROWTH?
•GVCs are a powerful driver of productivity growth, job creation, and increased living
standards.
•Countries that embrace them grow faster, import skills and technology, and boost
employment.
•With GVC-driven development, countries generate growth by moving to higher-value-
added tasks and by embedding more technology and know-how in all their agriculture,
manufacturing, and services production. GVCs provide countries the opportunity to leap-
frog their development process.

9. ARE DEVELOPING COUNTRIES PART OF THE
NEW GVC PARADIGM?
•Others view GVCs as recreating the core vs. periphery pattern, with the “good” jobs
concentrated in the North and “bad” jobs in the South.
•Yet even the most reluctant skeptics recognize that the GVC-driven success of nations
like China and India illustrates the significant boost in a country’s competitiveness that
can be delivered by combining competitive costs of production with high technology.
•The right strategies can help developing countries maximize their participation in GVCs.
•Some developing countries have fully embarked on the GVC revolution,but they still face
challenges in aligning GVCs with their national development strategies.

10. HOW DOES THE WORLD BANK GROUP HELP
COUNTRIES SEIZE GVC OPPORTUNITIES?
•The World Bank Group Global Practices and Cross-Cutting Solutions areas help client
countries design and implement effective, solutions-oriented reforms.
•The Bank Group provides integrated solutions tailored to country needs. Advisory
services and financial support—including development policy lending to governments,
investment in the private sector, and MIGA guarantees—can cover long-term strategies
for deep structural reform or support for more targeted policy interventions addressing
shorter-term challenges.
•The Bank Group brings to bear its hands-on local presence, access to lead firms and
investment communities, rich data, and world-class analytical capabilities.

11. WHAT CAN DEVELOPING COUNTRIES DO TO
OPTIMIZE PARTICIPATION IN GVCS?
•Governments need to have a clear vision and mandate to improve coordination among
government players, and ensure the involvement of the private sector.
•Opening borders and attracting investment can help jump-start entry in GVCs.
•Countries will derive the greatest benefit by maximizing the absorption potential of the
domestic economy and by strengthening its linkages with GVCs.

12. WHAT CAN DEVELOPING COUNTRIES DO TO
OPTIMIZE PARTICIPATION IN GVCS?
•Many diverse policy areas affect the success of GVCs. They include, among others, trade
policy, logistics and trade facilitation, regulation of business services, investment, business
taxation, innovation, industrial development, conformity to international standards, and
the wider business environment fostering entrepreneurship.
•Finally, countries should identify measures that will complement their GVC strategies.
These include a large swath of dimensions, from investment in education and vocational
training to environment and urbanization, from ICT and infrastructure building to labor
market mobility.

13. WHAT ROLE DOES THE WORLD BANK
GROUP’STHEMACROECONOMICS, TRADE AND INVESTMENT GLOBAL
PRACTICE PLAY?
•As the world of GVC production matures, the need for context-specific assessment and
intervention has become more important in answering fundamental questions about
GVC participation, sustainability, and the benefits to host countries.
•TheMacroeconomics,Trade and Investment Global Practice (MTI) provides evidence-
based policy options to formulate and implement context-specific GVC strategies.
•MTI uses analytical and diagnostics tools and data-gathering to offer solutions in terms of
analytical services, lending and investment operations, as well as guarantees customized
to specific country needs.

14. REFERENCE
•https://www.worldbank.org/en/topic/global-value-chains

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Philippine Role in Global Value Chains
BA 6 - ITA // International Trade Agreement
The Philippines plays a vital role in global value chains (GVCs), particularly in sectors
like electronics, agriculture, automotive, and information technology. The country is
known for its production of electronic components used in global supply chains,
including semiconductors, which are essential for many industries.
Raw Materials Finished Goods
Exports Exports
China
Japan
South Korea
Hong Kong
United States
Japan
China
Exports for
Consumption
Border Border Border
The contributes in the GVCs by production.

16. Industries
Philippines
Participate
within
GVCs
•Electronics
•Business
Process
Outsourcing
(BPO)
•Automotive Parts
•Agriculture and
Food Processing
Business Process
Outsourcing
BPO is a practice that
implies delegating a part
business processes to
an outer third-party
contractor.
BPO
INT.
COMPANY
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exports
Border
We need
Service
Assistance!
of the company’s

17. Industries
Philippines
Participate
within
GVCs
•Electronics
•Business
Process
Outsourcing
(BPO)
•Automotive Parts
•Agriculture and
Food Processing
The Philippines produces
components such as wiring
harnesses, which are essential
for vehicle electrical systems.
These parts are exported to
automotive manufacturers,
especially in Japan and the U.S.,
where they are integrated into
cars, trucks, and other vehicles.
Automotive

18. Industries
Philippines
Participate
within
GVCs
•Electronics
•Business
Process
Outsourcing
(BPO)
•Automotive Parts
•Agriculture and
Food Processing
Agriculture
The Philippines is a key player in the
export of processed agricultural
products. It’s one of the largest exporters
of coconut oil, which is used in food,
cosmetics, and other products
worldwide. Bananas and pineapples are
also significant exports, supplying
markets in Japan, the Middle East, and
other regions.
GOODS
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Int.
Market
Border
Int.
Market
Int.
Market
Int.
Market
Foreign
Consumer
Exports

19. •Investment in Skills
Development
•Discussant: Decerie Ann Teola
Skills development is crucial for a thriving economy
and a competitive workforce. It empowers individuals
with the knowledge and abilities they need to
succeed in a rapidly changing world.

20. The need for a skilled
workforce
1. Technological
advancement
The rapid pace of technological
advancement demands a
workforce adept at embracing new
tools and innovations.
2. Economic Growth
A skilled workforce is a cornerstone for
sustainable economic growth, fueling
innovation and productivity.
2. Global Competitiveness
To remain competitive in the global
marketplace, nations need to prioritize
investing in their human capital.

21. Addressing skills gaps
Needs Assessment: Identifying the specific skills gaps in the workforce and
industries is essential for targeed interventios.
Training and
development:
Providing accessible and high-quality training programs to
equip individuals with in demands skills is crucial.
Upskilling and Reskilling:
Enabling workers to update their skills and acquire
new ones to adapt to changing job market demands.

22. Life long learning and
Reskilling
Continuous learning:
Encouraging a culture of continuous learning to keep pace
with the ever-evolving job market.
Upskilling programs:
Providing opportunities for individuals to enhance existing
skills and acquire new ones.
Reskilling Initiatives:
Helping individuals transition into new fields or adapt to
evolving job requirements.

23. Expanding access to vocational
training
Accessibility
Making vocational training accessible to all individuals,
regardless of their background or prior education.
Relevance
Ensuring that vocational training programs align with
current and future industry needs.
Quality
Investing in high-quality vocational training to equip individuals
with the skills needed to succeed in their chosen field.

24. Collaborating with industry
partners
Industry input:
Involving industry leaders in curriculum development
and skills assessment to ensure relevance.
Mentorship and apprenticeships:
Providing opportunities for students to gain practical
experience through mentorship and apprenticeships
programs.
Job Placement support:
Facilitating connections between graduates and
potential employers to bridge the gap between
training and employment.

25. INFRASTRUCTURE
TRADE FACILITIES

26. INFRASTRUCTURE TRADE FACILITIES
Infrastructure trade facilitation refers to the
process of simplifying, modernizing, and
harmonizing export and import procedures to
make the movement of goods across borders
more efficient.
INTRODUCTION

27. The primary purpose of
infrastructure trade facilitation is to
reduce trade costs and enhance the
efficiency of international trade. By
streamlining processes and
improving infrastructure, countries
can facilitate smoother and faster
trade, which is crucial for economic
growth and development.

28. INFRASTRUCTURE TRADE FACILITIES
ADVANTAGES
Reduced Costs1.
Increased Competitiveness 2.
Economic Growth3.
Better Supply Chain Management4.
DISADVANTAGES
High Initial Investment1.
Implementation Challenges2.
Unequal Benefits3.