While COVID-19 has us all keenly aware of global supply chain challenges, a new issue of The Takeaway, COVID-19 No Match for the Forces of Global Trade: It Is Too Early to Declare the End of the Current Era of Globalization, explains the basic reasons why international trade has skyrocketed in recent years and why those forces are unlikely to be reversed.
The author, Richard Metters, is a Mosbacher Research Fellow and Professor and Head of the Department of Information and Operations Management at Mays Business School at Texas A&M University. He reminds us that “politics can cause tariffs to rise, but containerized ships and the internet will not go away. A US tariff on China will drive supply chains to source in Vietnam, or perhaps Africa, but not back to the United States.”
The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy at the Bush School of Government and Public Service at Texas A&M University.