Week 4: Incorporation into GVCs

Question 1

Strategic coupling

Answer 1

How firms and regions actively position themselves within GVCs.

Question 2

Strategic decoupling

Answer 2

How firms and economies reduce dependence on foreign GVCs, often to build local capabilities or avoid geopolitical risks.

Question 3

Role of institutions in GVCs

Answer 3

The (East Asian) late development model relied on a close interaction between the state and corporate/industry leaders. Institutions (formal and informal rules) influence the strategic choices available to firms.

Question 4

“Flexible state” (China)

Answer 4

Flexibility in central-local relations allows for experimentation and subsequent diffusion of successful formulae (Zhu, 2010).

Question 5

Doi Moi (Vietnam)

Answer 5

1986 – transition to socialist-oriented market economy.

Question 6

China’s opening of the economy - main channels of influence

Answer 6

Flow of knowledge from Taiwan; Industrial investment from Hong Kong; MNCs establishing operations and investing in China. Progressive opening to FDI, reducing institutional transaction costs, easing restrictions on EPZs.

Question 7

China +1 strategy

Answer 7

(The sources mention this in the context of the US-China trade war as companies moving production offshore. You may want to research this term independently for a full understanding).