Developing countries and particularly African countries need to borrow a leaf from the East Asian countries on how to benefit from Global production sharing. Global production sharing which in itself is the process of ‘splitting of the production process into discrete activities (tasks) which are then allocated across countries’, opens up new opportunities for export-led economies if they strategize and specialize in division of labour.
A country can benefit from the growth of world demand for automobiles and become competitive in the production of just a single auto part. Economic integration into the global market that developing countries crave cannot be easily achieved if countries continue to aim at completing production domestically. Due to technological advancement resulting in easy, fast and less costly telecommunication and transport, it is no longer important to aim at exploiting the comparative advantage on a product as a whole. Examples from East Asia can help us understand why global production sharing is an alternative that developing countries should embrace.
Global production sharing which is sometimes referred to as; international production fragmentation or vertical specialization or slicing the value chain or outsourcing or offshoring can be exemplified in about three products. Read more on how East Asian countries benifit from Global production sharing.
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