THE GLOBALIZATION CONUNDRUM POST COVID-19: INTERNALIZING THE RISKS OF THE SUPPLY CHAIN

Joseph Pelzman; Ofra Bazel-Shoham

doi:10.1142/S2194565922500075

THE GLOBALIZATION CONUNDRUM POST COVID-19: INTERNALIZING THE RISKS OF THE SUPPLY CHAIN

Joseph Pelzman, Ofra Bazel-Shoham

Research output: Contribution to journal › Article › peer-review

Abstract

In 2020, US and European firms undertook financial risk that they can ill-afford to carry, stemming from their supply chain networks. Many have gradually deluded themselves into thinking their risk was reasonable, while other firms have made production sourcing decisions with little idea of the true magnitude of their risks. However, the rising risk was an inevitable consequence of the economy's multinational firms, spreading the supply chain further away from their home base. For the purposes of this paper, we consider risk associated with a transaction to be excessive when the domestic multinational is likely to incur a loss that will seriously compromise its production and sales, and possibly force the firm into bankruptcy.

Original language	English
Article number	2250007
Journal	Global Economy Journal
Volume	21
Issue number	4
DOIs	https://doi.org/10.1142/S2194565922500075
State	Published - 1 Dec 2021
Externally published	Yes

Keywords

COVID-19
globalization
international trade
supply chain disruptions

ASJC Scopus subject areas

General Economics, Econometrics and Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1142/S2194565922500075

Cite this

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abstract = "In 2020, US and European firms undertook financial risk that they can ill-afford to carry, stemming from their supply chain networks. Many have gradually deluded themselves into thinking their risk was reasonable, while other firms have made production sourcing decisions with little idea of the true magnitude of their risks. However, the rising risk was an inevitable consequence of the economy's multinational firms, spreading the supply chain further away from their home base. For the purposes of this paper, we consider risk associated with a transaction to be excessive when the domestic multinational is likely to incur a loss that will seriously compromise its production and sales, and possibly force the firm into bankruptcy.",

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THE GLOBALIZATION CONUNDRUM POST COVID-19: INTERNALIZING THE RISKS OF THE SUPPLY CHAIN

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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