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There are grounds to think that, for goods within a fragmented international production structure, this concept suffers from the same limitation in evaluating export quality as the correlation between per-capita income and export composition.
Although WTO member countries agreed that for goods not wholly obtained in one country the criterion for determining the country of origin is the last substantial transformation, the detailed rules for conferring the originating status may vary from country to country when a product is manufactured partially or entirely from non-original (foreign) material.
While the international mobility of labor is generally not as unencumbered as that for goods and capital, that may be changing as more and more regional free trade agreements are considered.
Similar(57)
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com