The designations employed and the presentation of the material in this publication do not imply the expression of any opinion on the part of the NTU, FGI and WTO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of specific companies or products does not imply that they are endorsed or recommended by NTU or FGI or WTO or preferred to others that are not mentioned. The names of proprietary products are distinguished by initial capital letters. All reasonable precautions have been taken by NTU, FGI and WTO to verify the information contained in this publication. However, this published material is distributed without warranty of any kind, either expressed or implied. Responsibility for the interpretation and use of the material lies with the reader. Under no circumstances will NTU or FGI or WTO be liable for damages arising from its use. iii Table of contents Acknowledgements v List of contributors vii Illustrations ix Foreword by Pascal Lamy, Director-General of the WTO xv Preface by Victor K. Fung, Chairman of the Fung Global Institute xix Part I Changing features of global value chains 11 1 Global supply chains: why they emerged, why they matter, and where they are going 13 Richard Baldwin 2 The role of services 61 Patrick Low Part II Why and how we measure trade in value-added terms 83