For this assignment, we will assume that you have recently graduated from University and are now working as a consultant in a major firm. The firm has a large project with the Australian government.

The government has asked the firm to write a report about Australia’s opportunities in global value chains (GVCs) in Asia Pacific. The report should focus on GVCs in the agricultural/food sector. Your task is to provide background information and to draw a diagram (figure) to explain how global value chains in agriculture work.

As part of your analysis, you should answer the following question: Do GVCs contradict the notion of comparative advantage? To do so, you must first carefully define comparative advantage.

Give an example of a GVC that uses agricultural inputs from Australia and leads to the final production of consumer goods for consumption in Australia or elsewhere. Produce a diagram highlighting this GVC.