Final answer:
The value chain is the full range of activities that businesses go through to bring a product or service to their customers. It has been increasingly fragmented in modern international trade, which allows for greater specialization and innovation.
Step-by-step explanation:
The set of activities required to design, develop, produce, market, deliver, and provide post-sales service for products and services sold to customers is known as the value chain. This concept captures the process that creates value at every step, from the initial idea to the final product in the hands of the consumers.
The fragmentation of the value chain has been a significant trend in international trade, facilitating the specialization of countries and firms. This split allows for highly specialized functions such as designing an iPhone in the United States, sourcing parts from Korea, assembling in China, and marketing globally. The value chain's division not only enables trade in specialized parts like automobile dashboards or refrigerator shelves but also fosters innovation and efficiency gains within industries.