fact the result of efforts by firms

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Traditional trade statistics do not capture this reality, which is why the OECD launched deepening our understanding of how trade actually works. Using TiVA, we can better identify how much value each country and industry adds to a final product along the global supply chain. This approach provides a much more accurate picture of trade balances between countries and. Taking the example of the smart phone, traditional trade statistics would attribute 100% of a final Apple iPhone assembled in China to Chinese exports, whereas a value-added approach shows that China actually only retains around 4% of the total value of the iPhone – the rest of the value is attributed to other countries that provide inputs all along the supply chain.