Just Say No to “Friend-Shoring”
Global Voices
By Raghuram G. Rajan, Former Governor, RBI: It is not surprising that governments are groping for new policies to build more resilience and ensure a continuous supply of critical inputs.
Today’s global supply chains – made possible by reductions in tariffs and lower transportation and communication costs – have transformed production by allowing firms to manufacture goods wherever it is cheapest to do so. This has generally meant that while high-value-added inputs (such as research and development, design, advertising, and finance) are sourced in advanced economies, manufacturing moves to emerging markets and developing countries.
Just Say No to “Friend-Shoring”
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