Revisions
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How supply chains are being rewritten in a multipolar world, and [removed: what it means] for [removed: you].
How supply chains are being rewritten in a multipolar world, and [added: who pays] for [added: it].
For thirty years the rule of global trade was simple: make each part wherever it was cheapest, and ship it. That rule [removed: clearly ]built the supply chains behind almost everything you own. [removed: Most] big manufacturers now [removed: keep ]a second supplier outside China.
For thirty years the rule of global trade was simple: make each part wherever it was cheapest, and ship it. That rule built the supply chains behind almost everything you own. [added: Many] big manufacturers now [added: say they are adding ]a second supplier outside China.[added: 3]
Who Pays for Resilience
Who Pays for Resilience
A second supplier costs money, and someone always pays for it: shoppers through higher prices, or taxpayers through subsidies. The IMF estimates that [removed: fragmentation ]could cost the world economy [removed: as much as] 7% of output.2
A second supplier costs money, and someone always pays for it: shoppers through higher prices, or taxpayers through subsidies. [added: Neither shows up on a customs form. ]The IMF estimates that [added: a deep split into rival trading blocs ]could cost the world economy [added: up to] 7% of output[added: in the long run].2
When one factory makes most of a vital part, a single fire, flood or blockade can empty shelves on three continents. Paying more for a second source is insurance, and some goods, like chips and medicines, are worth insuring.
Held by many security analysts and some trade economists.