1st ICAI 2020

International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

One of the main benefits is providing evidence about trade imbalances, which are lower than traditional trade data indicate. WTO (2010) showed that the US-China trade balance in 2008 would have been about 40 percent lower if it had been estimated in value added terms. Similarly, Koopman et al. (2010) found that China’s trade surplus with the US would have been 41% lower, and with the EU15 49% lower than in gross terms. Trade in value data is also beneficial for assessing the impacts of trade wars or Brexit on industries and countries. A good example is the Visegrad countries whose automotive exports to the USA or UK are relatively low. However, there are differences between direct exports and final demand countries, and the USA and the UK are more critical as the final destination of Visegrad automotive exports. Ongoing technological changes are also having an impact on the automotive sector, not just on the production process but also products with more significant stress on electromobility. Since the financial crisis, the value chains have become shorter and new term describing it - slowbalization has appeared. Changes in the patterns of trade and production thus require constant monitoring and appropriate adjustment of policies. Acknowleddgements This article was written within the IGA project No. F2/49/2019, entitled “Global production networks against the background of technological change: the effects of these changes on the organization of the world economy”, at the University of Economics, Prague

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