Relocation Strategy of Global Supply Chain and Value Chain Under Deglobalization

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Author(s): José G. Vargas-Hernández (Posgraduate and Research Department, Tecnológico Mario Molina Unidad Zapopan, Mexico)
Copyright: 2023
Pages: 19
Source title: Managing Inflation and Supply Chain Disruptions in the Global Economy
Source Author(s)/Editor(s): Ulas Akkucuk (Bogazici University, Turkey)
DOI: 10.4018/978-1-6684-5876-1.ch005

Keywords: Business & Management / Business Science Reference / Economics and Economic Theory / Supply Chain Management

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Abstract

This chapter aims to critically analyze the implications that the national protectionist policies have on the global supply and value chains and the relocation of production. The analysis is based on the assumptions that the global economy is facing the possibility of decoupling of many trade connections, and this trend favors deglobalization processes that have long been promoted by populism, nationalism, and economic protectionism. It is concluded that global supply, production, and value chains, although being economically efficient, are no longer any more secure under national protectionist policies, and therefore, the relocation of production processes is mainly due to the increase in the level of income and wages of the developing countries that are the destination, and which reduce the advantages to relocate.

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Relocation Strategy of Global Supply Chain and Value Chain Under Deglobalization

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