When and Why Did GVC Theory Emerge

question 20

Multiple Choice

When and why did GVC theory emerge?

• A) In 2005, as a way to find pattern of learning for governments and firms.
• B) In the 21^st century because governments can help their companies upgrade into higher-value activities.
• C) Early in the 1990s to measure the ability of MNC to upgrade.
• D) Early in the 1990s to understand how different countries and companies participate in the creation of a single product.
• E) In 2005, to find better and more flexible contexts for international cooperation.

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Definitions:

Indirect Labor

Labor costs associated with workers who are not directly involved in producing goods or services, such as maintenance staff and supervisors.

Raw Materials

Raw materials are the basic, unprocessed inputs needed in the manufacturing process to produce finished goods.

Factory Payroll

Factory Payroll includes the total compensation paid to employees working within the manufacturing operations, directly involved in producing goods.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product.