Journal of Supply Chain Management Systems

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Global Supply Chain and Value Chain Relocation Strategy under Deglobalization


Affiliations
1 Postgraduate and Research Division, Instituto Tecnológico Mario Molina, Unidad Zapopan, Camino Areneros 1101, C.P. 45019 El Bajío, Zapopan, Jalisco, Mexico
2 National Technological Institute of México, Campus Cd. Guzmán, Av. Instituto Tecnológico 100, Cd. Guzmán, 49000, Jalisco, Mexico
     

   Subscribe/Renew Journal


This paper 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 favours deglobalization processes 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.

Keywords

Global Supply Chains, Production Chains, Protectionist Policies, Value Chains
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abdal, A., & Ferreira, D. M. (2021). Deglobalization, globalization, and the pandemic: Current impasses of the capitalist world-economy. Journal of WorldSystems Research, 27(1), 202-230. doi:https://doi.org/10.5195/jwsr.2021.1028

  • Baldwin, R., & Di Mauro, B. W. (Eds.) (2020). Economics in the time of COVID-19. London: CEPR Press.

  • Bardt, H., Ezell, S., Flores, T., González, N., Hattingh, C. Randolph, S., & Bandini, C. (2021). Global value chains after the COVID-19 crisis. Global Trade and Innovation Policy Alliance.

  • Barykin, S. E., Kapustina, I. V., Korchagina, E. V., Sergeev, S. M., Yadykin, V. K., Abdimomynova, A., & Stepanova, D. (2021). Digital logistics platforms in the BRICS countries: Comparative analysis and development prospects. Sustainability, 13, 11228 doi:https://doi.org/10.3390/su132011228

  • Bello, W. (2013). Capitalism’s last stand? Deglobalization in the age of austerity. London: Zed Books.

  • Boiral, O., Brotherton, M.-C., Rivaud, L., & Guillaumie, L. (2021). Organizations’ management of the COVID-19 Pandemic: A scoping review of business articles. Sustainability, 13(7), 3993.

  • doi:https://doi.org/10.3390/su13073993 Broadberry, S., & Harrison, M. (2005). The economics of World War I. Cambridge: Cambridge University Press.

  • Didea, L., & Ilie, D. M. (2020). The state of emergency and the economic repercussions. A new “Avalanche” of insolvencies. J.L. & Admin. Sci., 89(13).

  • Doh, J., Budhwar, P., & Wood, G. (2021). Longterm energy transitions and international business: Concepts, theory, methods, and a research agenda. J Int Bus Stud, 52, 951-970. doi:https://doi.org/10.1057/ s41267-021-00405-6

  • Ellyat, H. (2021, October 18). Supply chain chaos is already hitting global growth: And it’s about to get worse. CNBC.

  • FAO. (2021). The impact of disasters and crises on agriculture and food security. Rome: Food and Agriculture Organization of United Nations.

  • Findlay, R., & O’Rourke, K. (2008). Power and plenty: Trade, war, and the world economy in the second millennium. Princeton, NJ: Princeton University Press.

  • Gaillard, N. (2020). Country risk: Subtitle the bane of foreign investors. Springer. doi:https://doi.org/10.1007/978-3-030-45788-4

  • Grunwald, J., & Flamm, K. (1985). The global factory: Foreign assembly in international trade, Washington D.C.: Brookings Institution.

  • Ibn-Mohammed, T., Mustapha, K. B., Godsell, J., Adamu, Z., Babatunde, K. A., Akintade, D. D., Acquaye, A., Fujii, H., Ndiaye, M. M., Yamoah, F. A., & Koh, S. C. L. (2021). A critical analysis of the impacts of COVID-19 on the global economy and ecosystems and opportunities for circular economy strategies. Resources, Conservation and Recycling, 164. doi:https://doi.org/10.1016/j.resconrec.2020.105169; Retrieved from https:// www.sciencedirect.com/science/article/pii/ S0921344920304869

  • IMCO. (2020). Deglobalization: Implications for investors. Oxford Economics.

  • Irwin, D. A. (2020, April 23). The pandemic adds momentum to the deglobalization trend. Washington: Peterson Institute for International Economics.

  • James, H. (2018). Deglobalization: The rise of disembedded unilateralism. Annual Review of Financial Economics, 10(1), 219-237.

  • Javorcik, B. (2020, April 2). Coronavirus will change the way the world does business for good businesses will be forced to rethink their global value chains. Financial Times.

  • Kano, L., Tsang, E. W. K., & Yeung, H. W. C. (2020). Global value chains: A review of the multi-disciplinary literature. J Int Bus Stud, 51, 577-622. doi:https://doi.org/10.1057/s41267-020-00304-2

  • Liu, W., Dunford, M., & Gao, B. A. (2018). Discursive construction of the belt and road initiative: From neo-liberal to inclusive globalization. J. Geogr.Sci., 28, 1199-1214. doi:https://doi.org/10.1007/s11442-018-1520-y.

  • Meyer, K., & Peng, M. (2016). Theoretical foundations of emerging economy business research. J Int Bus Stud, 47, 3-22. doi:https://doi.org/10.1057/jibs.2015.34

  • Nandi, S., Sarkis, J., Hervani, A. A., & Helms, M. M. (2021). Redesigning supply chains using blockchainenabled circular economy and COVID-19 experiences. Sustainable Production, and Consumption. doi:https://doi.org/10.1016/j.spc.2020.10.019; Retrieved from https://www.sciencedirect.com/science/article/pii/ S2352550920313592

  • Napolitano, G. (2011). The two ways of global governance after the financial crisis: Multilateralism versus cooperation among governments. International Journal of Constitutional Law, 9(2), 310-339. doi:https://doi.org/10.1093/icon/mor038

  • Palomares, G. (2006). Relaciones internacionales en el siglo XXI. Madrid: Tecnos

  • Paul, J., & Dhir, S. (Eds.) (2021). Globalization, deglobalization, and new paradigms in business. Palgrave Macmillan. doi:https://doi.org/10.1007/978-3-030-81584-4

  • Petrini, C. (2001). Slow food, the case for taste. New York: Columbia University Press.

  • Qin, J. Y. (2020, November 1). WTO reform: Multilateral control over unilateral retaliation - Lessons from the US-China trade war. Wayne State University Law School Research Paper No. 2020-73. Retrieved from https://ssrn.com/abstract=3654510 or http://dx.doi.org/10.2139/ssrn.3654510

  • Rasiah, R., Gammeltoft, P., & Jiang, Y. (2010). Home government policies for outward FDI from emerging economies: Lessons from Asia. International Journal of Emerging Markets, 5(¾), 333-357. doi:https://doi.org/10.1108/17468801011058415

  • Reinalda, B. (2009). Routledge history of international organizations: From 1815 to the present day. Routledge. doi:https://doi.org/10.4324/9780203876572

  • Rodrik, D. (2007). One economics many recipes, globalization, institutions and economic growth. USA: Princeton University Press.

  • Rodrik, D. (2000). How far will international economic integration go? Journal of Economic Perspective, 14(1), 177-186.

  • Sapir, J. (2016, November 10). Jacques Sapir: Donald Trump, président de la démondialisation? Le Figaro. Retrieved from http://www.lefigaro.fr/vox/ monde/2016/11/10/31002-20161110ARTFIG00233jacques-sapir-donald-trump-president-de-lademondialisation.php

  • Sapir, J. (2011). La demondialisation. Paris: Seuil.

  • Shavshukov, V. M., & Zhuravleva, N. A. (2020). Global economy: New risks and leadership problems. Int. J. Financial Stud., 8, 7. doi:https://doi.org/10.3390/ ijfs8010007

  • Shih, W. C. (2020). Global supply chain in a postpandemic world. Harvard Business Review.

  • Spero, J. E., & Hart, J. A. (1997). The politics of international economic relations. Routledge. doi:https://doi.org/10.4324/9781315006154

  • Steinberg, F. (2005). Cooperación y conflicto en el sistema comercial multilateral: La organización mundial de comercio como institución de gobernanza económica global (Thesis Doctoral presentada en el Departamento de Análisis Económico: Teoría Económica e Historia Económica de la Facultada de Ciencias Económicas y Empresariales de la Universidad Autónoma de Madrid, España).

  • Vanham, P. (2019). A brief history of globalization. World Economic Forum.

  • Witt, M. A. (2019). De-globalization: Theories, predictions, and opportunities for international business research. J Int Bus Stud, 50, 1053-1077. doi:https://doi.org/10.1057/s41267-019-00219-7 World Bank. (2016, September). World bank data. Retrieved from http://data.worldbank.org/?display=default

  • WTO. (2021). World trade report 2021. Economic resilience and trade. World Trade Organization.

  • Zhu, G., Chou, M. C., & Tsai, C. W. (2020). Lessons learned from the COVID-19 pandemic exposing the shortcomings of current supply chain operations: A long-term prescriptive offering. Sustainability, 12, 5858. doi:https://doi.org/10.3390/su12145858

  • Additional Readings

  • Antras, P. (2020). Conceptual Aspects of Global Value Chains. Discussion Paper. No. DP14191. London: Centre for Economic Policy Research.

  • Armando, E., Azevedo, A. C., Fischmann, A. A., Costa Pereira, C. E. (2016). Business strategy and upgrading in global value chains: A multiple case study in information technology firms of Brazilian origin, RAI Revista de Administração e Inovação, 13(1), 39-47. doi:https://doi.org/10.1016/j.rai.2016.01.002

  • Ferrantino, M., and Koten, E. E. (2019). Understanding supply chain 4.0 and its potential impact on global value chains. In Global Value Chain Development Report. Geneva: World Trade Organization.

  • Govindan, K., Mina, H., & Alavi, B. A. (2020). Decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19). Transp. Res. E Logist. Transp. Rev., 138, 101967.

  • Hernández, V., & Pedersen, T. (2017). Global value chain configuration: A review and research agenda, BRQ Business Research Quarterly, 20(2), 137-150. doi:https://doi.org/10.1016/j.brq.2016.11.001

  • Ivanov, D. (2020). Viable supply chain model: Integrating agility, resilience, and sustainability perspectives. Lessons from and thinking beyond the COVID-19 pandemic. Ann. Oper. Res., 288, 1-21.

  • Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: Extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak. Int. J. Prod. Res., 58, 2904-2915.

  • Kano, L., Tsang, E. W. K., & Yeung, H. W. C. (2020). Global value chains: A review of the multi-disciplinary literature. J Int Bus Stud, 51, 577-622. doi:https://doi.org/10.1057/s41267-020-00304-2

  • Kot, S., Haque, U. A., & Baloch, A. (2020). Supply chain management in smes: Global perspective. Montenegrin J. Econ., 16, 87-104.

  • Min, S., Zhang, X., & Li, G. (2020). A snapshot of food supply chain in Wuhan under the COVID-19 pandemic. China Agric. Econ. Rev., 12, 689-704.

  • Nagao, T., Ijuin, H., Yamada, T., Nagasawa, K., & Zhou, L. (2022). COVID-19 disruption strategy for redesigning global supply chain network across TPP countries. Logistics, 6(1), 2. doi:https://doi.org/10.3390/ logistics6010002

  • Nagao, T., Ijuin, H., Yamada, T., Nagasawa, K., & Zhou, L. (2021, March 26-27). The impact of COVID-19 disruption on designing a global supply chain network across the trans-pacific partnership agreement. Proceedings of the Northeast Decision Sciences Institute 50th Anniversary Annual Conference (NEDSI2021).

  • Pla-Barber, J., Villar, C., & Narula, R. (2021). Governance of global value chains after the Covid-19 pandemic: A new wave of regionalization? BRQ Business Research Quarterly, 24(3), 204-213. doi:https://doi.org/10.1177/23409444211020761

  • Rodrik, D. (2018). New technologies, global value chains, and the developing economies (Background Paper Series. No. 1). Oxford: Pathways for Prosperity Commission.

  • Shi, D., Chen, Z., Marzena, H.-S., Razaque, L. A., & Zahid, R. M. (2021). The role of the global value chain in improving trade and the sustainable competitive advantage: Evidence from China’s manufacturing industry. Frontiers in Environmental Science.doi:10.3389/fenvs.2021.779295 URL=https://www.frontiersin.org/article/10.3389/fenvs.2021.779295

  • World Bank. (2020). World development report 2020: Trading for development in the age of global value chains. Washington, DC.

  • World Trade Organization. (2021). Global value chain development report 2021 beyond production. Asian Development Bank, Research institute for Global Value Chains at the University of International Business and Economics, the World trade Organization, The institute of Developing Economies – Japan External Trade Organization, and the China Development Research Foundation doi:http://dx.doi.org/10.22617/tCS210400-2


Abstract Views: 298

PDF Views: 0




  • Global Supply Chain and Value Chain Relocation Strategy under Deglobalization

Abstract Views: 298  |  PDF Views: 0

Authors

José G. Vargas-Hernández
Postgraduate and Research Division, Instituto Tecnológico Mario Molina, Unidad Zapopan, Camino Areneros 1101, C.P. 45019 El Bajío, Zapopan, Jalisco, Mexico
Omar C. Vargas-González
National Technological Institute of México, Campus Cd. Guzmán, Av. Instituto Tecnológico 100, Cd. Guzmán, 49000, Jalisco, Mexico

Abstract


This paper 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 favours deglobalization processes 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.

Keywords


Global Supply Chains, Production Chains, Protectionist Policies, Value Chains

References