Journal of Supply Chain Management Systems

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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
     

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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
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  • Global Supply Chain and Value Chain Relocation Strategy under Deglobalization

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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