Final answer:
Firms that provide products and services to the value chain are involved in the international trade practice of splitting up the value chain, where different stages of production occur in various locations, leading to specialization and economic gains.
Step-by-step explanation:
Entities that provide products and services to all stakeholders involved in the value chain include firms and other organizations that are part of the complex process of producing goods. The concept of splitting up the value chain, a trend in international trade, refers to the way in which the production of goods is divided into stages, often occurring in different geographic locations. For instance, the creation of the iPhone entails design and engineering in the United States, supplying parts from Korea, assembly in China, and marketing back in the United States.
Improvements in communication technology, sharing information, and transportation have made it feasible for firms to specialize in specific segments of the value chain, facilitating intra-industry trade that leads to increased economic gains through specialization and innovation on specific components of products.
The splitting of the value chain is indicative of how international trade has evolved from exchanging finished products to exchanging specialized components, allowing countries and firms to focus on precise aspects of the production process.