Koen De Backer at OECD is talking at a conference now. He documents, as did the www.wiod.org project global value chains. Here's the idea.
The traditional case for exchange rate deprections is that countries regain competitiveness since they can export more. But, nowadays, production of exports needs imports or, production chains are distributed throughout the world. So, a deprecation helps exports, but hurts imports of goods that are then exported.
Note two more points. First, in this world, manufacturing is meaningless since its doing lots of service activities too. Second, intangibles becomes even more important in terms of value added. (Source:
based on Shih (1992), Dedrick and Kraemer (1999) and Baldwin