Statement 1 is correct as networked products like electronic goods are produced by using components produced in different countries and firms. Statement 2 is incorrect as global value chains are production networks spread across different countries.
Global value chains (GVCs) refer to international production sharing, a phenomenon where production is broken into activities and tasks carried out in different countries.
There should be strong regulation of private enterprises
Free trade and free enterprises
Increasing the tax rate and reducing welfare expenditure
Protection of infant industries
The Washington Consensus refers to a set of free market economic policies supported by prominent financial institutions such as the IMF, the World Bank, and the U.S.
The ideas were aimed to help developing countries that faced economic crises. The Washington Consensus recommended structural reforms that increased the role of market forces in exchange for immediate financial help. Main elements of the package were free trade and market led exchange rate.
The Keynesian macroeconomics suggested active government intervention like government expenditure and tax cuts to stimulate the economy during recession. On the other hand, the monetarists led by Milton Friedman advocated interest rate cuts by the central bank.
Mercantilism was an old trade philosophy that suggested protection from imports and promotion of exports.