Regional cooperation and partnerships.
As international trade conditions are reshaping patterns of global production, developing countries may face challenges in accessing new markets and moving into higher-value segments of production. Smaller developing countries, in particular, often lack the domestic market size necessary to justify large-scale investments in industrial production and upgrading without integration into global markets . Even larger economies such as India and Brazil are likely to be affected by the shortening and fragmentation of GVCs, especially given their reliance on imported industrial inputs and export markets for certain industries . To address these challenges, industry can establish more regionalized supply chains that use shorter, more cost-effective and less polluting transport routes while incorporating SMEs in developing countries . Legal frameworks must support the development of more localized supplychains, extending beyond mere reductions in CO2emissions or the adoption of r...