Abstract
Global supply networks connected by advanced information and communication technologies and powered by innovative transportation solutions enabled a significant increase in merchandise trade over the past decade. This growth, however, lost steam due to escalating trade tensions and a slowing world economy, igniting a trend toward deglobalization, the process in which economic agents are reducing international economic links with concomitant reshoring. It has therefore become necessary to accurately assess the impact of deglobalization on the design and management of global supply chains. Cost advantage, a principal driver of offshoring decisions, is eroded over time through both higher competition and convergence of wages. As competition shifts toward higher responsiveness, offshored facilities find themselves at a greater disadvantage. Political pressure in terms of tariffs and sanctions along with management control issues reduce the attractiveness of offshoring. The rate at which offshoring decisions are reversed, however, is inversely related with the complexity of both the manufacturing asset and the local ecosystem.
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Notes
- 1.
Cattaneo et al. (2010).
- 2.
Witt (2019).
- 3.
McKinsey Global Institute (2020).
- 4.
Antràs (2020).
- 5.
Buckley (2011).
- 6.
- 7.
Cohen and Lee (2020).
- 8.
Witt and Yücesan (2021).
- 9.
Sterman (2001).
- 10.
Kano et al. (2020).
- 11.
The New York Times, 15 July 2020.
- 12.
Le Figaro, 12 June 2020.
- 13.
The New York Times, 14 June 2020.
- 14.
Hausman et al. (2010).
- 15.
Dong and Kouvelis (2020).
- 16.
Witt and Yücesan (2021).
- 17.
Duhigg and Bradsher (2012).
- 18.
Beatti (2022).
- 19.
Cohen and Lee (2020).
- 20.
Brynjolfsson et al. (2019).
- 21.
Laplume et al. (2016).
- 22.
Leering (2017).
- 23.
Freund et al. (2019).
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Yücesan, E. (2023). Deglobalization. In: Competitive Supply Chains. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-19975-2_9
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