Multinational Firms, Value Chains, and Vertical Integration. Laura Alfaro, 2016, Paper, “In recent decades there has been a very rapid increase in flows of goods and capital between countries and between firms, driven by technological progress and falling cross-border restrictions. The rising ability to retain or outsource various production stages within firms and across country boundaries has fueled fragmentation of production and the emergence of global value chains. Cross-border production, investment, and trade in final and intermediate goods by multinational corporations (MNCs) are key drivers of this phenomenon.Link