Products traded between firms in different countries are often components rather than final products. Final products may be sold to outside the region in which fragmentation happens: for example, East Asian countries often sell their final products to Europe and the USA. Producers in less developed countries operate in positions within a production chain which add less value to final product.
Components are usually exchanged between companies across national borders rather than complete goods. Complete goods may be exported outside their local market: for instance, countries like East Asia often sell their finished products to Europe and the USA. Companies in underdeveloped nations work at lower levels of a production chain that add less value to the final product.