The COVID-19 pandemic caused significant disruptions in the global value chains on which many industries depend. In a recent issue of The Takeaway, faculty member Anupam Agrawal urges steps be taken to add resilience to manufacturing capabilities in areas critical to national interest.
The COVID-19 pandemic is causing both increased demand for essential health supplies and decreased supply capabilities. Many industries are experiencing demand and supply shocks, and few countries have been resilient enough to cope well with the pace of transformed supply and demand requirements.
In “The Call of the Pandemic: Rethinking Global Value Chains,” Anupam Agrawal, Associate Professor at Texas A&M University’s Mays Business School and a Mosbacher Research Fellow, describes how and why firms outsource and some of the disadvantages of black-box out-sourcing. Agrawal also explains that to help mitigate the effects of disasters, firms and countries need to critically evaluate and map their upstream supply chains and public policy needs to support resilience in global value chains.
The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy at the Bush School of Government & Public Service at Texas A&M University.