The essence and characteristics of global value chains: theoretical aspect

The article carries out a comparative analysis of scientific approaches to understanding the essence of global value chains, as a result of which the author’s position on this issue is substantiated. It has been established that the territorial organization of international business and the international division of labor form the conceptual basis of the formation of global value chains. Special attention is paid to how processes of global economic integration contribute to constant modifications of value chains, as well as the importance of their effective management, which is a decisive factor in increasing the competitiveness of companies and countries. The article argues that participation in global value chains provides businesses and governments with significant benefits, such as access to new markets, increased production efficiency, and increased value added. At the same time, risks have been identified, in particular those related to the instability of supply chains, increased competition and dependence on global markets. Different types of global value chains and features of their management in the conditions of modern challenges of globalization are considered. Conclusions have been made regarding the prospects for the development of Ukrainian business based on the concept of global value chains, taking into account global trends and national features of the economy. The article is useful for scientists, specialists in the field of international business and economics, as well as for those who are interested in the integration of national economies into global production processes. A comparative analysis of the positions of modern scientists regarding the essence of global value chains was carried out. Reasoned author’s position on the issue of the essence of global value chains. It has been established that the territorial organization of international business, as well as the international division of labor, is the conceptual basis for the formation of global value chains. It is argued that in the conditions of strengthening integration processes in the global economy, constant modifications of global value chains take place, and their management becomes one of the important factors of competitiveness. The benefits that business units and countries receive from participating in global value chains are determined, and the associated risks are also identified. The typology of global value chains, features of their management are analyzed. Conclusions have been made regarding the prospects for domestic business development based on the concept of global value chains.