Abstract
The last three decades have seen an acceleration of the interconnectedness of the global economy on a number of levels: economic, productive, financial, social, and cultural. Some referred to it as a turbocharged globalisation (Friedman, The Lexus and the olive tree: Understanding globalization. New York: Random House, 2000) since, not only had it been multi-faceted, but it had moved faster than any time before. The 2008 financial crisis has somewhat pushed to the fore the undesirable implications of such global linkages, especially in advanced economies where de-industrialisation, joblessness, and imbalances in the national and regional economies were reducing the responsiveness and resilience of economic systems to face external shocks. This led to the emergence of bottom-up resentment that has shaken political establishments in both the United States and Europe; consider the election of Trump in the United States, the emergence of populist parties in Europe and Brexit. A dislike for the consequences of globalisation (generally speaking in the populist narrative) has been rendered with a political discourse around ‘re-balancing the economy’ and ‘job creation’. Protectionists and insular approaches to trade have surfaced with worrying consequences. The geography of the global economy is changing as new players and new dynamics are reshaping global markets and global production.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
See data in this link http://clustermapping.us/
References
Aart, J. (2000). Globalization: A critical introduction. Houndmills: Palgrave Macmillan.
Ancarani, A., Di Mauro, C., Fratocchi, L., Orzes, G., & Sartor, M. (2015). Prior to reshoring: A duration analysis of foreign manufacturing ventures. International Journal of Production Economics, 169, 141–155.
Bailey, D., & De Propris, L. (2014a). Recession, recovery and resilience? Regional Studies., 48(11), 1757–1760.
Bailey, D., & De Propris, L. (2014b). Manufacturing reshoring and its limits: The UK automotive case. Cambridge Journal of Regions, Economy and Society, 7(3), 379–395.
Bailey, D., & De Propris, L. (2017). What does Brexit mean for UK automotive and industrial policy. In The political economy of Brexit. Newcastle: Agenda Publishing.
Bailey, D., Corradini, C., & De Propris, L. (2018). ‘Home-sourcing’ and closer value chains in mature economies: The case of Spanish manufacturing. Cambridge Journal of Economics, 42(6), 1567–1584.
Bair, J., & Gereffi, G. (2001). Local clusters in global chains: The causes and consequences of export dynamism in Torreon’s blue jeans industry. World Development, 29(11), 19.
Baldwin, R. (2006). Globalisation: The great unbundling(s). Economic Council of Finland, 20, 5–47.
Barrientos, S., Gereffi, G., & Pickles, J. (2016). New dynamics of upgrading in global value chains: Shifting terrain for suppliers and workers in the global south. Environment and Planning A, 48(7), 1214–1219.
Berger, S. (2013). Making in America: From innovation to market. Cambridge: Mit Press.
Buckley, P. J., & Casson, M. (1999). A theory of international operations. In The internationalization process of the firm: a reader (2nd ed., pp. 55–60). London: International Business Thomson.
Canham, S., & Hamilton, R. T. (2013). SME internationalisation: Offshoring, “backshoring”, or staying at home in New Zealand. Strategic Outsourcing: An International Journal, 6(3), 277–291.
Cantwell, J., & Narula, R. (2001). The eclectic paradigm in the global economy. International Journal of the Economics of Business, 8(2), 155–172.
Caraveli, H. (2016). Global imbalances and EU core-periphery division: Institutional framework and theoretical interpretations. World Review of Political Economy, 7(1), 29–55. https://doi.org/10.13169/worlrevipoliecon.7.1.0029.
Cava, D. (2018, August 22). Siri, please bring my iCar around now: Is Apple making a cool new ride or just dabbling with the techie parts? USA Today.
Coren, M. J. (2017). All of the car companies, suppliers, and auto startups in Silicon Valley. Retrieved from https://qz.com/1072873/all-of-the-car-companies-suppliers-and-auto-startups-in-silicon-valley/
Corradini, C., & De Propris, L. (2017). Beyond local search: Bridging platforms and inter-sectoral technological integration. Research Policy, 46(1), 196–206.
De Propris, L. (2018). Disruptive Industry 4.0, MAKERS report. Report to the EU Commission.
De Propris, L., Menghinello, S., & Sugden, R. (2008). The internationalisation of local production systems: Embeddedness, openness and governance. Entrepreneurship and Regional Development, 20(6), 493–516.
Deusche Bank. (2014). Industry 4.0 upgrading of Germany’s industrial capabilities on the horizon. Deusche Bank Research. Available at SSRN: https://ssrn.com/abstract=2656608
Dicken, P. (2015). Global shift: Mapping the changing contours of the world economy. London: Sage.
Ellram, L. M., Tate, W. L., & Petersen, K. J. (2013). Offshoring and reshoring: An update on the manufacturing location decision. Journal of Supply Chain Management, 49(2), 14–22.
Engel, J. S. (2015). Global clusters of innovation: Lessons from Silicon Valley. California Management Review, 57(2), 36–65.
Essletzbichler, J. (2004). The geography of job creation and destruction in the US manufacturing sector, 1967–1997. Annals of the Association of American Geographers, 94(3), 602–619.
Feenstra, R. C., & Hanson, G. H. (1996). Globalisation, outsourcing, and wage inequality (No. w5424). National Bureau of Economic Research.
Foerstl, K., Kirchoff, J. F., & Bals, L. (2016). Reshoring and insourcing: Drivers and future research directions. International Journal of Physical Distribution & Logistics Management, 46(5), 492–515.
Fratocchi, L. (2018, April). Additive manufacturing as a reshoring enabler considerations on the why issue. In 2018 workshop on metrology for Industry 4.0 and IoT (pp. 117–122). IEEE.
Friedman. (2000). The Lexus and the olive tree: Understanding globalization. New York: Random House.
Fukao, K., Inui, T., Kawai, H., & Miyagawa, T. (2004, June). Sectoral productivity and economic growth in Japan, 1970–98: An empirical analysis based on the JIP database. In Growth and productivity in East Asia, NBER-East Asia seminar on economics (Vol. 13, pp. 177–228). University of Chicago Press.
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104. https://doi.org/10.1080/09692290500049805.
Gilpin, R., & Gilpin, J. M. (2001). Global political economy: Understanding the international economic order. Princeton: Princeton University Press.
Gray, J. V., Skowronski, K., Esenduran, G., & Johnny Rungtusanatham, M. (2013). The reshoring phenomenon: What supply chain academics ought to know and should do. Journal of Supply Chain Management, 49(2), 27–33.
Gygli, S., Haelg, F., & Sturm, J.-E. (2018). The KOF globalisation index – Revisited. KOF working paper, no. 439.
Hansen-Kuhn, K. (1997). Clinton, NAFTA and the politics of US trade. NACLA Report on the Americas, 31(2), 22–26.
He, E. (2017). How Silicon Valley is inventing the future of cars. Retrieved from https://www.paloaltoonline.com/news/2017/07/28/how-silicon-valley-is-inventing-the-future-of-cars
Heng, S. (2014). Industry 4.0: Upgrading of Germany’s industrial capabilities on the horizon. Available at SSRN: https://ssrn.com/abstract=2656608
Kinkel, S. (2014). Future and impact of backshoring – Some conclusions from 15 years of research on German practices. Journal of Purchasing and Supply Management, 20(1), 63–65.
KPMG. (2016). The factory of the future. Industry 4.0 – The challenges of tomorrow. KPMG AG Wirtschaftspruefungsgesellschaft.
KPMG. (2017). Beyond the hype. Separating ambition from reality in Industry 4.0. KPMG International.
Livesey, F. (2017). From global to local. London: Profile Books.
Livesey, F. (2018). Unpacking the possibilities of deglobalisation. Cambridge Journal of Regions, Economy and Society, 11(1), 177–187.
Lund, S., & Tyson, L. (2018). Globalisation is not in retreat: Digital technology and the future of trade. Foreign Affairs, 97, 130.
Marangos, J. (2008). The evolution of the anti-Washington consensus debate: From ‘post-Washington consensus’ to ‘after the Washington consensus’. Competition & Change, 12(3), 227–244.
Marfia, G., & Degli Esposti, P. (2017). Blockchain and sensor-based reputation enforcement for the support of the reshoring of business activities. In Reshoring of manufacturing (pp. 125–139). Cham: Springer.
Martin, R., Tyler, P., Storper, M., Evenhuisd, E., & Glasmeier, A. (2018). Globalization at a critical conjuncture? Cambridge Journal of Regions, Economy and Society, 11, 3–16.
Mason, B. (2018). A tale of two automotive industries. US blogs. Retrieved from http://usblogs.pwc.com/industrialinsights/2018/01/30/a-tale-of-two-automotive-industries/
McKinsey. (2015). Industry 4.0. How to navigate digitalization of the manufacturing sector. McKinsey Digital. Available at: https://www.mckinsey.com/business-functions/operations/our-insights/industry-four-point-o-how-to-navigae-the-digitization-of-the-manufacturing-sector
Miroudot, S., Lanz, R., & Ragoussis, A. (2009). Trade in intermediate goods and services (OECD trade policy papers, Vol. 93). Paris: OECD Publishing. https://doi.org/10.1787/5kmlcxtdlk8r-en.
Moradlou, H., & Backhouse, C. J. (2016). A review of manufacturing re-shoring in the context of customer-focused postponement strategies. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 230(9), 1561–1571.
Moradlou, H., & Tate, W. (2018). Reshoring and additive manufacturing. World Review of Intermodal Transportation Research, 7(3), 241–263.
Nachum, L. (2000). World investment report 1999: Foreign direct investment and the challenge of development. United Nations Conference on Trade and Development (UNCTAD): United Nations, New York and Geneva, 1999, ISBN 92-1-112440-9.
O’Connor, S. (2016). Robots may cut off the path to prosperity in the developing world. The Financial Time. Retrieved from https://www.ft.com/content/5d0b1206-36f2-11e6-a780-b48ed7b6126f
OECD. (2017). Measuring and analysing the impact of GVCs on economic development, global value chain development report. Paris: OECD.
Piketty, T. (2014). Capital in the twenty-first century. Cambridge, MA: The Belknap Press of Harvard University Press.
PWC. (2016). Industry 4.0: Building the digital enterprise. 2016 global industry 4.0 survey.
Reshoring Institute. (2017). California, state economic survey and incentive comparison. Retrieved from https://reshoringinstitute.org/wp-content/uploads/2017/07/state-economic-profile-california.pdf
Rodrik, D. (2016). Premature deindustrialization. Journal of Economic Growth, 21(1), 1–33.
Siemens. (2015). On the way to Industrie 4.0 – The digital enterprise. Siemens AG. Available at: https://www.siemens.com/press/pool/de/events/2015/digitalfactory/2015-04-hannovermesse/presentation-e.pdf
Srai, J. S., & Ané, C. (2016). Institutional and strategic operations perspectives on manufacturing reshoring. International Journal of Production Research, 54(23), 7193–7211.
Stentoft, J., Olhager, J., Heikkilä, J., & Thoms, L. (2016). Manufacturing backshoring: A systematic literature review. Operations Management Research, 9(3–4), 53–61.
Tate, W. L. (2014). Offshoring and reshoring: US insights and research challenges. Journal of Purchasing and Supply Management, 20(1), 66–68.
Tate, W. L., & Bals, L. (2017). Outsourcing/offshoring insights: Going beyond reshoring to rightshoring. International Journal of Physical Distribution & Logistics Management, 47(2/3), 106–113.
van Bergeijk, P. A. G. (2018). On the brink of deglobalisation…again. Cambridge Journal of Regions, Economy and Society, 11, 59–72.
Williamson, J. (Ed.). (1990). Latin American adjustment: How much has happened. Washington, DC: Institute for International Economics.
WSJ. (2002, November 19). Workers aren’t included in lights-out factories. The Wall Street Journal.
Xiangguo, C. H. E. N. (2007). Is China the factory of the world? Ritsumeikan Center for Asia Pacific Studies (RCAPS). Occasional paper, 7(4).
Acknowledgements
The writing of this chapter has been supported by the EU Horizon 2020 project MAKERS—Smart Manufacturing for EU Growth and Prosperity is a project funded by the Horizon 2020 Research and Innovation Staff Exchange Programme, which is a Research and Innovation Staff Exchange under the Marie Skłodowska-Curie Actions, grant agreement number 691192.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
De Propris, L., Pegoraro, D. (2019). Technological Disruptions and Production Location Choices. In: Chidlow, A., Ghauri, P.N., Buckley, T., Gardner, E.C., Qamar, A., Pickering, E. (eds) The Changing Strategies of International Business. The Academy of International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-03931-8_11
Download citation
DOI: https://doi.org/10.1007/978-3-030-03931-8_11
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-03930-1
Online ISBN: 978-3-030-03931-8
eBook Packages: Business and ManagementBusiness and Management (R0)