Geopolitical risk and supply chain diversification

Companii

Geopolitical risks are reshaping global production, yet little is known about how firms reallocate their supply chains in response. Using parent-affiliate matched data on Japanese multinational corporations from 2009–2022, this column shows that firms respond to rising geopolitical risk by diversifying production from China to ASEAN economies, rather than engaging in full decoupling or reshoring. The findings highlight a shift towards supply chain resilience through regional diversification.

astăzi