Synchronized Factories

Until recently, most international trade between industrialized nations and developing countries-the so-called North-South trade-consisted of an exchange of Northern manufactures for Southern raw material and primary goods. Meanwhile, most trade between industrialized nations consisted of exchanges of different manufacturing goods or of similar goods with different qualities or varieties. This scenario changed
dramatically when the production of manufactures in the North became fractionalized into various stages and geographically dispersed to plants across the globe. Today many countries, including several developing countries, are manufacturing and trading fragments of goods that they did not produce before. In the last three decades, this fragmentation of production has been one of the main factors behind the
current unprecedented level of world trade as a share of world GDP.
[Cham: 2014]

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