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Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021 GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

While the establishment of international value chains has created wealth on a global scale, globalization has recently come under pressure. Trade distortions caused by Chinese intervention into markets and protectionist measures in several countries have worsened the political environment for free trade.

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Global Value Chains After the COVID-19 Crisis
Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

ARTICLE OF THE GLOBAL TRADE AND INNOVATION POLICY ALLIANCE (GTIPA)

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German Economic Institute (IW) German Economic Institute (IW)

While the establishment of international value chains has created wealth on a global scale, globalization has recently come under pressure. Trade distortions caused by Chinese intervention into markets and protectionist measures in several countries have worsened the political environment for free trade.

Integrated regional supply chains or new technologies that reduce cost advantages of global production can lead to a market-based re-organization of supply chains. The COVID-19 crisis also raised the issue of security of supply, as restrictions on international supply chains may have contributed to the economic downturn during the crisis.

Diversification of supply, reshoring, and stockpiling are relevant objectives, for which companies may be willing to pay a price. measures. Governmental provision of supply in the event of a global crisis may also be considered for very specific products—such as crude oil reserves. However, political intervention to force or to deeply subsidize reshoring has the potential to significantly reduce the wealth-creating effect of the global division of labor. Leveraging global value chains can often balance supply risks and help reduce costs. Security of supply should be managed by considering a range of options and costs at the company level. If global supply chains are utilized effectively, they can provide both wealth through the division of labor, competition, and a high level of security at the same time

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Global Value Chains After the COVID-19 Crisis
Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini: Global Value Chains After the COVID-19 Crisis

ARTICLE OF THE GLOBAL TRADE AND INNOVATION POLICY ALLIANCE (GTIPA)

Download PDF

German Economic Institute (IW) German Economic Institute (IW)

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Hubertus Bardt / Stephen Ezell / Tomas Flores / Natalia González / Chris Hattingh / Sean Randolph / Giacomo Bandini External Publication 25. February 2021

GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis

Link to Global Trade & Innovation Policy Alliance (GTIPA)

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The impact of disrupted production on producer prices in Germany
Manuel Fritsch / Christoph Schröder IW-Trends No. 2 4. July 2022

The impact of disrupted production on producer prices in Germany

From 2020 to 2021 the producer prices of manufactured goods in Germany increased by 6 per cent. However, price hikes accelerated during 2021, a development which has continued into 2022.

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Philipp Saueracker Event 21. June 2022

EU/China/USA- three bloc systemic conflict: Digital policies as trade barriers?!

European companies operate world-wide within international value-chains, networks and ecosystems. However, the world is changing for geopolitical reasons. Increasingly, it becomes divided into large blocks with the EU, the United States and China at the ...

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