Potential Benefits of Global Value Chains for the Developing Countries-Furniture

Furniture firms across Asia are becoming partners in global value chains (GVC). It can be an important catalyst in learning and adapting more advanced technologies. It can also enhance the managerial and business development processes. The benefits of trade liberalization that are accompanied by the establishment of international supplier chain arrangements between firms in the industrial and less developed countries are estimated 10-20 times larger than those without such networks.
There are at least the following mechanisms on how furniture industry in developing countries can improve their position by engaging in GVCs:

· Adherence to “just in time” global networks requires the improvement of efficiency in transports and communication infrastructure and for a stable business environment.

· GVCs can enable firms to enter global production networks more easily, allowing them to benefit from globalization, climb the technology ladder, and gain wider access to international markets.

· GVCs provide firms with a wide spectrum of options to operate in global markets with a view to staying competitive.

· GVCs offer a way for local enterprises in developing countries to engage in international markets at their own level of capability.