Modern trends in the development of international production networks

Abstract

The article presents the results of identifying the contemporary trends in the development of international production networks. Over the course of the study, it has been determined that the fragmentation of international production is a result of certain global processes that have pervaded the system of international production. Foreign value added in trade, which is defined as the share of imported goods and services included in the country's exports, is an important indicator of the development of international production networks. It is substantiated that an IPN, which involves large, medium and small suppliers from different regions and countries of origin, is formed through the decisions of the MNC regarding the geographical location of operations, including in the form of outsourcing decisions. In the course of the study, it has been proven that the regionalization of production processes intensified intra-regional trade operations, fostering the development of complementarity and interdependence of countries, the spread and deepening of integrative interaction. A comparison of regionalization processes in the North American, European and Asian-Pacific models of regional integration proves that the division of labor within the framework of the latter has a more complex structure and is characterized by the presence of significant open networks covering a significant number of countries in the region, which account for the majority of the intra-firm exchange volume.