Gereffi, GaryLuo, Xubei2014-05-142014-05-142014-04https://hdl.handle.net/10986/18333This is a background paper to the 2014 World Development Report. Risk is inherent to the pursuit of opportunity. This paper surveys the recent literature and looks at the risks and opportunities firms and their workers face in the global value chains. First, it examines the risk-sharing mechanisms that firms provide from the national and global perspectives; second, it takes a closer look at the new opportunities and challenges for firms and individuals in the global arena; third, it discusses the role of economic upgrading and social upgrading; and finally it sheds light on how the government can help people manage risks and reap the benefits in the participation of global value chains.en-USCC BY 3.0 IGOACCESS TO FINANCEACCESS TO FINANCINGAGRICULTUREBANKRUPTCYBARGAININGBONDSBRANDSCAPITAL ACCUMULATIONCAPITAL MARKETSCAPITAL RETURNSCHILD LABORCOMPETITIVENESSCONSUMER GROUPSCONSUMERSCONTRACTUAL ARRANGEMENTSCORPORATE CAPITALCOUNTRY CREDITCREDIT CONSTRAINTSCREDIT CRUNCHESDEBTDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDISCRIMINATIONDISMISSALDISPOSABLE INCOMEDIVISION OF LABORDOMESTIC MARKETDOMESTIC MARKETSDOWNSIDE RISKSDRIVERSEARNINGSECONOMIC ACTIVITIESECONOMIC ANALYSISECONOMIC CRISESECONOMIC CRISISECONOMIC IMPLICATIONSECONOMIC OPPORTUNITYECONOMIC RECOVERYECONOMIC RISKSEMERGING ECONOMIESEMERGING MARKETSEMPLOYEEEMPLOYMENTEMPLOYMENT OPPORTUNITIESENTERPRISE PERFORMANCEENTREPRENEURSENTRY BARRIERSEQUIPMENTEQUITY FINANCEEXPECTED RETURNSEXPLOITATIONEXPORT MARKETSEXPORTERSEXPORTSEXTERNALITIESFAIRFAIR TRADEFAMILIESFARMERSFINANCIAL CRISISFINANCIAL SECTORFINISHED PRODUCTFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTGDPGLOBAL ECONOMYGLOBAL MARKETGLOBAL MARKETSGLOBALIZATIONGOVERNMENT LEGISLATIONGOVERNMENT POLICIESGOVERNMENT POLICYGROUP LENDINGHOST COUNTRIESHOST COUNTRYHOUSEHOLD SAVINGHOUSEHOLDSHUMAN CAPITALHUMAN RIGHTSINCOMEINCOME LEVELSINDUSTRIALIZATIONINEQUALITIESINEQUALITYINFORMATION ASYMMETRYINNOVATIONINNOVATIONSINSURANCEINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL MARKETSINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVENTORYINVESTINGINVESTMENT FLOWSINVESTMENT PORTFOLIOJOB OPPORTUNITIESLABOR FORCELABOR ORGANIZATIONLABOR PRODUCTIVITYLABOR STANDARDSLABOURLAYOFFSLIMITED LIABILITYLIQUIDITYLIQUIDITY CRISISLIVING STANDARDSMACROECONOMIC VOLATILITYMARKET DIVERSIFICATIONMARKET SHARESMARKETINGMIGRANT WORKERSMINIMUM WAGESMULTINATIONALMULTINATIONALSNATIONAL ECONOMIESNATURAL DISASTERSNEGATIVE EXTERNALITIESNUTRITIONOUTPUTSPENSIONPERSONAL COMPUTERSPERSONAL INCOMEPOLITICAL ECONOMYPORTFOLIOPRIVATE SAVINGPRIVATE SAVINGSPRODUCTION PROCESSPRODUCTIVITYPURCHASINGPURCHASING POWERRECESSIONREMITTANCESRESOURCE ALLOCATIONRISK AVERSIONRISK MANAGEMENTRISK SHARINGSAFETYSAFETY NETSSALESSAVINGSSAVINGS RATESAVINGS RATESSKILLED LABORSKILLED WORKERSSMALL FARMERSSMALLHOLDERSSOCIAL INCLUSIONSPREADSTOCK MARKETSUPPLIERSUPPLIERSSUPPLY CHAINSUPPLY CHAIN MANAGEMENTSUPPLY CHAINSTRADE FAIRSTRADE UNIONSTRADINGTRANSACTIONTRANSACTION COSTSUNIONUNSKILLED WORKERSVALUE ADDEDVULNERABLE GROUPSWAGESWORKING CONDITIONS10.1596/1813-9450-6847