Global Trade and International Classifications
The future of international trade statistics
Responding to demands of policy makers for more information on international trade and its relation to global value chains, employment, environment and the interdependence of economies, the participants of the Global Forum on Trade Statistics identify the following points of improvement.
Improve the relevance of international trade statistics by connecting trade information and integrating it with its economic, social, environmental and financial dimensions while minimizing the response burden.
Improve the statistical production process by better defining and organizing the co-operation among national stakeholders
Improve international classifications and correspondence tables relevant for research on international trade and globalization, such as research on trade in value added, on global value chains and on outsourcing of business functions.
Global Business StrategiesProduction Process
Manufacturing Processes
Processing primary goods processing intermediate goods
producing final goods
Import of primary goods
Import of intermediate goods
Import of intermediate processing services
Import of final goods processing services
Support Business FunctionsDistribution and Logistics; Marketing and Sale; ICT Services; Research and Development; Legal and Administrative Services
Import of support business services
11/04/2311/04/23 55
Revision of the Classification by Broad Economic
Categories
(BEC)
Global Value ChainsThe Apple iPod, and Emblematic Case: Low Cost Assembly and Global Sourcing
Regional production systems are nested within global production systems
Designed in Cupertino
Assembled in China
OECD 7
USA CHN
iPhone: $179.00
Assembly: $6.50
2009 US trade balance in iPhones(mio USD)
CHN JPN KOR GER ROW World
Gross -1,901.2 0 0 0 0 -1,901.2
Value added 48.1 -684.8 -259.4 -340.7 -542.9 -1,901.2
Components: $10.75
The iPhone example (Xing and Detert, 2010)The iPhone example (Xing and Detert, 2010)
JPN
KOR
GER
ROW
$60.6
$22.96
$30.15
$48.04
Apple sold 11.3 million iPhones in the USin 2009
Retail price: $500.00(Profit margin: 64%)
Global sourcing and MNC affiliates
Materials
Customers
Suppliers
Price
End Use
Market Modular
LeadFirm
Turn-keySupplier
Relational
Captive Suppliers
Captive
LeadFirm
Component and Material
Suppliers
Hierarchy
IntegratedFirm
LeadFirm
Full-packageSupplier
Component and Material
Suppliers
RelationalSupplierIndustrialized countries
Developing countries
Local MNC affiliates
Exports
9
Classification by Broad Economic Categories (Current version) Basic classes of goods in SNA
1 Food and beverages
11 Primary
111 Mainly for industry Intermediate112 Mainly for household consumption Consumption
12 – Processed
121 Mainly for industry Intermediate122 Mainly for household consumption Consumption
2 Industrial supplies not elsewhere specified
21 Primary Intermediate22 Processed Intermediate
3 Fuels and lubricants
31 Primary Intermediate32 Processed
321 Motor spirit Not classified322 Other Intermediate
4 Capital goods (except transport equipment), and parts and accessories thereof
41 Capital goods (except transport equipment) Capital42 Parts and accessories Intermediate
5 - Transport equipment and parts and accessories thereof
51 Passenger motor cars Not classified52 Other
521 Industrial Capital522 Non-industrial Consumption
53 Parts and accessories Intermediate6 Consumer goods not elsewhere specified
61 Durable Consumption62 Semi-durable Consumption63 Non-durable Consumption
7 - Goods not elsewhere specified Not classified
10
Classification by Broad Economic Categories (Proposed) Basic classes in SNA
1 Food and beverages products
11 Primary
111 Mainly for industry Intermediate112 Mainly for household consumption Consumption113 Multi-purpose goods Not classified
12 – Processed
121 Mainly for industry Intermediate122 Mainly for household consumption Consumption123 Multi-purpose goods Not classified
13 – Services
131 Mainly for industry Intermediate132 Mainly for household consumption Consumption133 Multi-purpose services Not classified
2 Energy products
21 Primary
211 Mainly for industry Intermediate212 Mainly for household consumption Consumption213 Multi-purpose goods Not classified
22 – Processed
221 Mainly for industry Intermediate222 Mainly for household consumption Consumption223 Multi-purpose goods Not classified
23 – Services
231 Mainly for industry Intermediate232 Mainly for household consumption Consumption233 Multi-purpose services Not classified
3 – Transport products
31 Goods
311 Mainly for gross fixed capital formation Capital312 Mainly for industry Intermediate
312a Generic
312b Customized
313 Mainly for household consumption Consumption314 Multi-purpose goods Not classified
32 Services
321 Mainly for gross fixed capital formation Capital322 Mainly for industry Intermediate323 Mainly for household consumption Consumption324 Multi-purpose services Not classified
11
Classification by Broad Economic Categories Basic classes in SNA
4 – Electronic products
41 Goods
411 Mainly for gross fixed capital formation Capital412 Mainly for industry Intermediate
412a Generic
412b Customized
413 Mainly for household consumption Consumption414 Multi-purpose goods Not classified
42 Services
421 Mainly for gross fixed capital formation Capital422 Mainly for industry Intermediate423 Mainly for household consumption Consumption424 Multi-purpose services Not classified
5 – Products not elsewhere classified
51 Goods
511 Mainly for gross fixed capital formation Capital512 Mainly for industry Intermediate
512a Generic
512b Customized
513 Mainly for household consumption Consumption514 Multi-purpose goods Not classified
52 Services
521 Mainly for gross fixed capital formation Capital522 Mainly for industry Intermediate523 Mainly for household consumption Consumption524 Multi-purpose services Not classified
11/04/2311/04/23 1212
New Classification for
Business Functions
A value chain describes the full range of activities that firms and workers
carry out to bring a product from its conception to its end use and beyond.
Global Production International SourcingPeter Boegh Nielsen (Statistics Denmark)
CORE FUNCTIONS
SUPPORT
SUPPORT C. FUNCTIONS
15
Core business functionProduction of final goods or services intended for the market or third parties carried out by the enterprise and yielding income. The core business function equals in most cases the primary activity of the enterprise. It may also include other (secondary) activities if the enterprise considers these to comprise part of their core functions.
CPC classes88 Manufacturing services on physical inputs owned by
others854 Packaging services87 Maintenance, repair and installation (except construction)
services89 Other manufacturing services; publishing, printing and
reproduction services; materials recovery services
16
Support business function
• Distribution and LogisticsCPC classes61 Wholesale trade services62 Retail trade services65 Freight transport services671 Cargo handling services672 Storage and warehousing services6791 Freight transport agency services and other freight transport services68 Postal and courier services
• Marketing, sales and after sales services including help desks and call centres
CPC classes83114 Marketing management consulting services836 Advertising services and provision of advertising space or time837 Market research and public opinion polling services83812 Advertising and related photography services85931 Telephone call centre services85962 Trade show assistance and organization services
• Engineering and related technical servicesCPC classes833 Engineering services8391 Specialty design services
17
Support business function
• Distribution and Logistics• Marketing and sales• After sales services including help desks and call centres
• Engineering and related technical services• ICT services• Administrative and management functions• Research & Development
• Procurement• Finance and Accounting• Facility Management
11/04/2311/04/23 1818
EBOPS 2010 to CPC, version 2.0
Correspondence Table
11/04/2311/04/23 1919
International Trade in service statistics
Service exports/imports Statistics - BOP
FATS statistics
Transactions between residents and non-residents
Transactions between residents
20
Services transactions between residents and non-residents (BPM5)
1. Transportation
2. Travel
3. Communication services
4. Construction services
5. Insurance services
6. Financial services
7. Computer and information services
8. Royalties and license services
9. Other business services
10. Personal, cultural and recreational services
11. Government goods and services
21
Services transactions between residents and non-residents (BPM6)
1. Manufacturing services on physical inputs owned by others
2. Maintenance and repair services
3. Transportation
4. Travel
5. Construction
6. Insurance and pension services
7. Financial services
8. Charges for the use of intellectual property
9. Telecommunications, computer and information services
10. Other business services
11. Personal, cultural and recreational services
12. Government goods and services
Starting from the existing correspondence table between EBOPS 2002 and CPC 1.0, the new correspondence table was established and was subsequently amended in accordance with the text of Chapter 10 of BPM6 and Chapter 3 of MSITS 2010.
References: MSITS 2010, Chapter 3, Section O BPM6, Chapter 10 CPC, version 2.0 (see
http://unstats.un.org/unsd/cr/registry/cpc-2.asp )