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The Economics of Resilient Global Supply Chains in the Post-COVID-19 Era
Abstract
The global expansion of supply chains between 1990 and 2010 was characterized by efficiency-seeking through extreme specialization, task fragmentation, and geographical dispersion. Such chains, while offering cost benefits, are vulnerable to damaging disruption when operational conditions shift. The COVID-19 pandemic has initiated a reconsideration of supply chains with calls for enhanced resilience. These calls coincide with a growing fragmentation of global production and supply chains with China's increasing influence in global standards, supply of intermediate inputs, and domestic economic upgrading. This chapter examines the growth and vulnerabilities of lean global supply chains, arguments for greater resilience, and the cost implications of supply chain restructuring at a time of growing uncertainty and possible geographic fracture.
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