The Creation and Increase of Value Added in the Value Chain and Its Impact on the Price

Abstract

In order to characterize the process of the value chain scientifically and empirically, both at the international and regional, and local levels, and the sequence of its rings, it is first necessary to clarify the interconnected stages (rings of the chain) of reproduction. By studying the chain connection of the stages of reproduction, the sequence of formation and expansion of the value chain can be clarified. The article examines a series of links from the acquisition of primary raw materials, their processing, storage, distribution, supply, and sale, depending on the scale of the value chain in the direction of achieving the result of economic activity. It is proposed that this chain is formed based on common principles in individual countries and regions of the world, and even at the international level. The type of economic activity performed in each ring of the chain faces certain costs, the process of conversion of costs takes place, and because of the activity of each ring in the chain, the product gains added value. The process of value creation and increase in value in such a logistical movement has been clarified and a scientific conclusion has been drawn out.