Since value chains do not focus merely on the physical transformation of inputs within one firm, they offer the possibility of capturing economic returns that can be found in different links in the value chain.

To better understand the opportunities and upgrading possibilities that value chains offer to SMEs, one needs to consider that value chains are not homogeneous, and that the opportunities for rent appropriation by different parties can vary from chain to chain. Essentially, however, there are four paths economic actors can follow when threatened by competition (Kaplinsky 2000).

The matrix further identified the sphere of influence of the company, identifying layers of responsibility within the company, within the value chain and within society.

There will be fewer delays along the supply chain, and less room for corruption.

Also, attaining competitiveness will require an increase in efficiency in the whole supply chain management.

Despite rapid developments in Information and Communications Technologies in recent decades, trade documents remain the core means of exchanging information in the international supply chain.

Of course, upward pressure on commodity prices also stems from supply side challenges.

The use of electronic trade documents is still confined to a specific geographic or functional context such as an automated customs declaration system or a national logistics platform, meaning that information exchange in the supply chain operates simultaneously on a dual system.

Internationalization patterns of developing countries' SMEs

The challenge for producers within value chains is to determine how and where (in which markets) to position themselves so as to best reap the benefits of globalization.

(b) Average prices must reflect purchases across all types of outlets to provide representative national prices

Elimination of paper in the international supply chain is achievable but the transition needs to be managed

In addition, supply capacity in LDCs should be reinforced through the provision of adequate technical assistance and financial aid.

The transition to a paperless supply chain has already begun and appears to be a dynamic and diverse process.

He pointed to limited supply capacities and low levels of domestic savings as the main factors impairing the ability of these countries to benefit from trade preferences.

TNCs have shown a keen interest in, and committed themselves to, assisting their supply chain partners in upgrading the capacity of SMEs.

Several views were expressed on this issue. It was observed that a short product life cycle and deverticalization of the industry would create better opportunities for African countries and LDCs to participate in the electronics production value chain and trade.

Finding the right way to access value chains and appropriate largest returns possible is not always easy.

Linkages, value chains and outward investment Internationalization patterns of developing countries' SMEs (TD B COM.3 69)

TD B COM.3 69 Linkages, value chains and outward investment Internationalization patterns of developing countries' SMEs

Paperless trade related strategies should take into account the costs of such a transition, as well as the specificities of the distribution of these costs between parties in the international supply chain.

For those companies, one way to gainfully integrate into the global economy could be their incorporation into international value chains.

Since it is of key importance for key chain governing firms to be able to rely on a competitive supplier base, their role is to ensure effective functioning of the chain.

While process and product upgrading are readily understood, they are probably least likely to offer a bigger share of value chain returns. As experience shows, even if firms upgrade in these areas, if they remain specialized in those links in the value chain that are subject to fierce competition, there is a high risk that this concentration will lead to immiserizing growth.

Value chains do not focus solely on processes within one single firm rather, they involve different firms located in various places and linked together in a chain.

The aim is to further integrate supply chain processes, significantly reduce transaction costs and risks, and help combat fraud.

Global value chains as a way to upgrade the capabilities

The private sector aimed to increase sales and reduce total supply chain costs, for which reduced lead time, distribution costs and inventories were required.

A co operative, at least an input supply and marketing co operative, Is an open compa ny.

Anchor chains

The reduction of trade barriers owing to trade liberalization and openness affects SMEs positively, since it facilitates their expansion into international markets and their integration into international production networks and supply chains and enhances their growth possibilities.

Accordingly, the development of supply chains may not only benefit the foreign affiliates but also increase the productive and export capacity of host countries.

The issues note on Linkages, value chains and outward investment Internationalization patterns of developing countries' SMEs (TD B COM.3 69) had been prepared by the UNCTAD secretariat to facilitate the Commission's discussions.

This has enabled them to develop a vibrant domestic audiovisual industry, without the need to adopt domestic policies for protecting and promoting local supply capacities.

Fixing the Food Chain

Is the dog chained?

The majority of the world's people today are in chains the chains of poverty and underdevelopment.

The most common way to divide sales responsibilities is on the basis of sales specialisa tion. The key strategic question is the basis for the orientation on the first level to be used.

Table 7 Co operatives which mix machinery pooling and input supply market ing activities

Global value chains as a way to upgrade the capabilities of domestic SMEs 10

They tether us all to a chain.

any of the fences, chains and guards

The prisoner is in chains.

Transform the entire supply chain.

Look at these old slave chains.