1. Home
  2. Studies
  3. GTIPA Perspectives: 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

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.

Download PDF
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)

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

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

Download PDF
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

Download Link GTIPA
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)

Download Link GTIPA

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
How to Unlock the WTO Blockage and Why China Holds the Key
Jürgen Matthes in CESifo Forum External Publication 30. April 2021

How to Unlock the WTO Blockage and Why China Holds the Key

The WTO has been getting into an ever-deeper crisis in recent years, even though it had been a success story at its outset in 1995 and for several years afterward, IW expert Jürgen Matthes lines out.

IW

Read the article
Jürgen Matthes IW-Report No. 10 30. March 2021

Competitive Pressure and Market Distortions by China

The combination of China's size, the increasing competitive pressure from China, its rapid technological catch-up and the competitive distortions of state capitalism could threaten prosperity in Germany. Therefore, it is important to assess the extent of ...

IW

More about this topic

Content element with id 8880 Content element with id 9713