Home

  RE-SHORING AND COMPE

The decline after 2007 might also be linked to financial flows and not necessarily related to re-shoring. Firm-level data Data at the firm level could help to support some of the findings at the aggregate level, particularly with respect to investment flows. Firm level data are available from the Factset database, which provides data for more than 70, 000 publicly listed firms from 100 countries. (...) They also find that in the same period “[f]or every back-shoring firm, there [we]re more than three offshoring firms” 11suggesting that this phenomenon cannot be the source of fundamental changes in Europe.  In the UK, a survey conducted by Manufacturing Advisory Service (500 firms) reveals that in 2013 11 per cent of firms back-shored while 4 per cent offshored. 12 EEF (the Manufacturers’ Organisation, UK) finds similar results with one in six manufacturers bringing back production to the UK between 2011 and 2014, which constitutes a slight increase from 2009. 13  Based on German data, Kinkel (2012) finds that 3 per cent of firms back-shored from 2006 to 2009 compared to the previous period (2004-2006).

Score: 1552935.2 - https://www.ilo.org/wcmsp5/gro...enericdocument/wcms_409031.pdf

  RE-SHORING AND COMPE

The decline after 2007 might also be linked to financial flows and not necessarily related to re-shoring. Firm-level data Data at the firm level could help to support some of the findings at the aggregate level, particularly with respect to investment flows. Firm level data are available from the Factset database, which provides data for more than 70, 000 publicly listed firms from 100 countries. (...) They also find that in the same period “[f]or every back-shoring firm, there [we]re more than three offshoring firms” 11suggesting that this phenomenon cannot be the source of fundamental changes in Europe.  In the UK, a survey conducted by Manufacturing Advisory Service (500 firms) reveals that in 2013 11 per cent of firms back-shored while 4 per cent offshored. 12 EEF (the Manufacturers’ Organisation, UK) finds similar results with one in six manufacturers bringing back production to the UK between 2011 and 2014, which constitutes a slight increase from 2009. 13  Based on German data, Kinkel (2012) finds that 3 per cent of firms back-shored from 2006 to 2009 compared to the previous period (2004-2006).

Score: 1552935.2 - www.ilo.org/wcmsp5/grou...enericdocument/wcms_409031.pdf

  EIBA book chapter20190530_LINKMeetingFormat

Given China’s specialization in footloose assembly activities, we would expect the country’s exports to be vulnerable to multinational firms’ decisions to relocate their production elsewhere in the wake of tariff shocks. (...) We conjecture that these trends are lowering the ability of multinational firms to relocate from China and that the country’s vulnerability to U.S. protectionism has therefore decreased over time. (...) We have described a theoretical framework in which multinational firms can react to a contractionary trade policy shock by relocating their final assembly to another country.

Score: 1475029.2 - https://www.un.org/development...9LINK-Wednesday-Session3-B.pdf

  MakingGlobalizationSociallySustainableAmended13-9-11.indb

Biscourp and Kramarz (2007) use French firm-level data to examine the impact of importing and exporting on job creation and destruction in firms. (...) While research using firm-level data allows researchers to dig deeper into questions related to firm heterogeneity and how this relates to trade, it leaves out an important facet – namely, what happens to firms that are in, say, import-competing sectors but that do not trade. (...) Hence, any possible job losses due to offshoring (the relocation effect) are more than outweighed by the increased productivity and competitiveness in the firm, which allows it to expand employment (the scale effect).19 These results relate to the short to medium run, being estimated for one to three years after the event.

Score: 1462417.6 - https://www.wto.org/english/re...p_e/glob_soc_sus_e_chap1_e.pdf

  Regulatory Protectio

The second effect creates inefficiency through the number of firms: higher standards on imports reduce the sales of foreign firms, trig- gering entry of domestic firms and exit of foreign firms. (...) Given w2 = 1, w1 is determined by the balance-of-trade condition: ni pi jxi j = n j p jix ji. (19) One important feature that distinguishes the one-sector model from the two-sector one is that the production relocation effect disappears. To see this, first note that since there is only one sector 17 and all firms are homogeneous, we have li = Li/ni. (...) Further substitute this equation into the free-entry condition (18) to get: ni = Li fiσ . (20) Since ni does not depend on any of country j’s variables, relocating firms via policies is impossible. As the labor supply in the differentiated sector is completely inelastic, changes in profit (and thus revenue) induced by policy changes will lead to relative wage adjustments (Gros, 1987).

Score: 1439574.4 - https://www.wto.org/english/news_e/news18_e/ymeipaper.pdf

  UNHCR - As COVID-19 rages, Mexican firm steps up to save lives

UNHCR - As COVID-19 rages, Mexican firm steps up to save lives Donate Do you need help? (...) José Manuel is among more than 100 refugees and asylum seekers employed at Mabe, which was itself founded 74 years ago by two entrepreneurs escaping the turmoil of post-Civil War Spain. The firm is now one of the world’s largest appliance makers. (...) The scores of refugees from Honduras, El Salvador and Guatemala who are employed at Mabe “are extremely committed to the company and are hungry to do well and take full advantage of the opportunity they’ve been given,” said Pablo Moreno, the firm’s head of corporate affairs. Latin America is currently one of the epicentres of the coronavirus pandemic.

Score: 1428999.6 - https://www.unhcr.org/news/sto...can-firm-steps-save-lives.html

  UNHCR - As COVID-19 rages, Mexican firm steps up to save lives

UNHCR - As COVID-19 rages, Mexican firm steps up to save lives Donate Do you need help? (...) José Manuel is among more than 100 refugees and asylum seekers employed at Mabe, which was itself founded 74 years ago by two entrepreneurs escaping the turmoil of post-Civil War Spain. The firm is now one of the world’s largest appliance makers. (...) The scores of refugees from Honduras, El Salvador and Guatemala who are employed at Mabe “are extremely committed to the company and are hungry to do well and take full advantage of the opportunity they’ve been given,” said Pablo Moreno, the firm’s head of corporate affairs. Latin America is currently one of the epicentres of the coronavirus pandemic.

Score: 1428999.6 - https://www.unhcr.org/en-ie/ne...can-firm-steps-save-lives.html

  UNHCR - As COVID-19 rages, Mexican firm steps up to save lives

UNHCR - As COVID-19 rages, Mexican firm steps up to save lives Donate Do you need help? (...) José Manuel is among more than 100 refugees and asylum seekers employed at Mabe, which was itself founded 74 years ago by two entrepreneurs escaping the turmoil of post-Civil War Spain. The firm is now one of the world’s largest appliance makers. (...) The scores of refugees from Honduras, El Salvador and Guatemala who are employed at Mabe “are extremely committed to the company and are hungry to do well and take full advantage of the opportunity they’ve been given,” said Pablo Moreno, the firm’s head of corporate affairs. Latin America is currently one of the epicentres of the coronavirus pandemic.

Score: 1428999.6 - https://www.unhcr.org/en-my/ne...can-firm-steps-save-lives.html

  UNHCR - As COVID-19 rages, Mexican firm steps up to save lives

UNHCR - As COVID-19 rages, Mexican firm steps up to save lives Donate Do you need help? (...) José Manuel is among more than 100 refugees and asylum seekers employed at Mabe, which was itself founded 74 years ago by two entrepreneurs escaping the turmoil of post-Civil War Spain. The firm is now one of the world’s largest appliance makers. (...) The scores of refugees from Honduras, El Salvador and Guatemala who are employed at Mabe “are extremely committed to the company and are hungry to do well and take full advantage of the opportunity they’ve been given,” said Pablo Moreno, the firm’s head of corporate affairs. Latin America is currently one of the epicentres of the coronavirus pandemic.

Score: 1412527.3 - https://www.unhcr.org/uk/news/...can-firm-steps-save-lives.html

  [Business Communication]

Tariff impacts on trade  Tariffs traditionally evaluated using standard trade model 𝑀𝑀 = 𝑔𝑔 𝑌𝑌,𝑃𝑃,𝑃𝑃𝑀𝑀  The Armington (1969) formulation 𝑙𝑙𝑙𝑙 𝑀𝑀 𝐷𝐷 = 𝜎𝜎 𝑙𝑙𝑙𝑙 𝑃𝑃 𝑃𝑃𝑀𝑀 + 𝜎𝜎 𝑙𝑙𝑙𝑙 1−𝛿𝛿 𝛿𝛿 𝑙𝑙𝑙𝑙 𝑀𝑀𝑗𝑗 𝑀𝑀𝑘𝑘 = 𝜎𝜎 𝑙𝑙𝑙𝑙 𝑃𝑃𝑀𝑀𝑗𝑗 𝑃𝑃𝑀𝑀𝑘𝑘 + 𝜎𝜎 𝑙𝑙𝑙𝑙 𝛿𝛿𝑗𝑗 𝛿𝛿𝑘𝑘 o Tariffs directly affect trade by changing relative price of goods from different markets  Effects of hike in tariff (or tariff-equivalent barrier) depends on substitutability of home and foreign goods, 𝜎𝜎, or between alternative foreign source countries GVCs and substitutability  Standard model assumes goods have clear national identities  But production has become fragmented o Global value chains  This will make a difference for tariff impacts o Backward and forward linkages  May increase substitutability of domestic and foreign goods o Multinationals may be able to relocate production to avoid bilateral tariff: production switching Production switching and tariff impacts  We sketch a theoretical model (Ma and Van Assche, 2014) where companies have option to produce at home or abroad o Conditions under which firms will choose to develop GVCs  The option for the MNE to relocate production: o Increases the tariff elasticity of the supplier country’s exports o Exports of countries specialized in footloose activities are more elastic to tariffs  What about China? (...) China’s export-led development strategy 10 Source: Klitgaard and Wheeler (2017) A processing-trade oriented Chinese economy is very exposed to US Protectionism Functional upgrading Chinese upgrading Toll manufacturer: manufactures a product using inputs provided by the foreign lead firm. Contract manufacturer: responsible for searching, obtaining, performing quality control, and paying for the imported intermediates prior to conducting their manufacturing functions Functional upgrading in China  The share of contract manufacturing in total processing trade increased by 11% during the period 2000-2006, and more slowly since then o (Van Assche and Van Biesebroeck, 2018).  Functional upgrading makes Chinese firms more indispensable in GVCs. o And their exports less footloose Functional upgrading in China Source: Klitgaard and Wheeler (2017) 50 55 60 65 70 75 80 85 90 2000 2002 2004 2006 2008 2010 2012 2014 2016 2017 edition 2019 edition Data Source: OECD/WTO Trade in Value Added Database Share of domestic value added in China’s gross exports, 2000-2016 Upgrading and China’s tariff vulnerability  China’s ongoing production upgrading is likely making the country less vulnerable to protective US trade measures  But this is an ongoing process o How vulnerable does China remain?

Score: 1393270.9 - https://www.un.org/development...9LINK-Wednesday-Session3-A.pdf