Business updates

In recent years, world trade has seen complex global value chains multiply, where a country may specialise in manufacturing a single component of a multinational company’s final product, such as the screen on your smartphone, for example. Manufacturing FDI can act as a strong job creator by supporting economies’ integration into global value chains.

In order for a production line spread across continents to function, smooth and predictable cross-border trade is essential. Trade facilitation refers to processes aimed at clearing goods across borders as quickly and predictably as possible, e.g. speeding up customs clearance or making customs procedures  more transparent.

More specifically, the report found that improving the trade facilitation environment by 1% corresponds with a 3.2% increase of FDI into manufacturing.

Read full article here.

(Source: ICC)