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.

GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis
Article of the Global Trade and Innovation Policy Alliance (GTIPA)
Institut der deutschen Wirtschaft (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

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)
Institut der deutschen Wirtschaft (IW)
GTIPA Perspectives: Global Value Chains After the COVID-19 Crisis
Link to Global Trade & Innovation Policy Alliance (GTIPA)

Schadet der US Inflation Reduction Act der deutschen Wirtschaft?: Einspruch gegen Übertreibungen
In einem Beitrag für die Atlantik Brücke schätzen IW-Direktor Michael Hüther und Jürgen Matthes, Leiter des Clusters Globale und regionale Märkte des IW, die Auswirkungen des seit 1. Januar 2023 wirksamen Inflation Reduction Act (IRA) der USA für den deutschen ...
IW
Implications of a Post-War Economic Order for Global Supply Chains
The Russian assault on the Ukraine has not only caused immense human tragedy, but is also likely to have long-lasting effects on the global trading order.
IW