Global supply chains are undergoing a "great reallocation," according to a working paper by Harvard Business School Professor Laura Alfaro. Companies are moving manufacturing operations to low-cost countries like Vietnam, Mexico, and Costa Rica, despite the buzz around "reshoring." This reshuffling could result in higher costs and prices for US businesses and consumers. However, geographic diversification could also help companies weather future crises. While there has been a step back from doing business with China, global supply chains have proven more resilient than expected, with imports replacing Chinese goods with those from other locations.
Frequently Asked Questions (FAQ)
FAQ 1: What does the term "great reallocation" refer to in the context of global supply chains?
Answer: The term "great reallocation," as mentioned by Harvard Business School Professor Laura Alfaro, refers to how companies are shifting and adapting their supply chain strategies in response to the disruptions caused by COVID-19. This involves reassessing and reconfiguring their sourcing, manufacturing, and distribution practices to become more resilient and agile in the face of global challenges.
FAQ 2: Which Harvard Business School professor has documented changes in companies due to COVID-19?
Answer: Harvard Business School Professor Laura Alfaro has documented how and why companies have adapted their supply chains due to the impacts of COVID-19.
FAQ 3: Has COVID-19 broken the global value chain?
Answer: While the article title "Has COVID-19 Broken the Global Value Chain?" suggests a significant impact of COVID-19 on supply chains, the content of the article would be needed to provide a deeper understanding of the extent to which the pandemic has affected global value chains. Editor-in-Chief of Harvard Business School Working Knowledge, Sean Silverthorne, may provide insights on this matter based on the article.
For further information on how global supply chains have adapted to COVID-19 according to Harvard Business School Working Knowledge, you can refer directly to their website and the specific articles:
- COVID Tested Global Supply Chains. Here's How They've Adapted: Harvard Business School Working Knowledge Article
- Has COVID-19 Broken the Global Value Chain?: Harvard Business School Working Knowledge Article
Please note that the answers provided are based on the limited information available in the search results summary and that further reading of the full articles may be necessary for comprehensive answers.