Globalization of the German Automotive Industry: Where Does Added Value Occur?

Summary:

A central aspect of globalization is that the production of goods and services is divided into different stages of added value at home and abroad. While direct supplier relations can be understood reasonably well, the direct and indirect added value contributions of domestic and foreign suppliers often remain hidden. Using the German automotive industry as an example, we show the extent to which other countries contribute directly and indirectly to added value in this industry’s production.

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