In general, the most value added activities such is R&D, procurement and after-sales services are kept in developed countries due to several reasons such as availability of capital, know-how, experience, etc. Less value added activities such as manufacturing are located in low cost developing countries. This is how GVC is working!
It is very effective and modern form of making business but progress is so fast and consumption is so high that it is having big impact on environment! Pollution become global problem and the cost has to be correctly distributed among the countries within GVC. Obviously the biggest pollution occurs in the manufacturing sites and often it is in developing countries BUT the consumption of the products produced in developing countries is moved to developped countries where occur consumption pollution. Yes, it is not even but manufacturing is driven by consumption… So why environment impact GVC? Simply because developing countries didn’t count environmental cost into their products prices! Hopefully it’s changing because pollution is not an issue of the concerned country or region, but it’s global issue! If you understood how GVC is working, it is a challenges but also opportunity!