Outsourcing/ value chain deconstruction
The vast container ships that sail into the ports of most developed countries are often thought to be full of cheap electronics, toys and other finished goods, bound for shop shelves, writes Robert Wright. The truth is more complicated, however. Many of the containers bring components, chemicals and other semi-finished parts for industrial processes.
Those components are moving along production lines that stretch around the world. The question is how fundamentally the vast changes in the world economy following the 2008 financial crisis – and a series of shocks to supply chains following recent natural disasters – will reshape the system.
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