Risk and redesign of global supply chains: effects on trade and international investment

Abstract

The evolution of global supply chains is one of the main economic issues of current interest, from both a theoretical and an applied perspective. Firstly, this article studies global supply chains by means of  a taxonomic analysis of risks related to them. Secondly, a theoretical model is proposed that allows for the identification of the trade and direct investment flows that will materialize as  supply chains adjust to  new risk levels. This theoretical model also will also lead to the proposal of a number of hypothesis regarding the future evolution of global supply chains and the nature and direction of the trade and investment flows that their adjustment may foreseeably produce.

Keywords:

global supply chains, trade flows, foreign direct investment flows, risks, internationalization, globalization

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