Global production and trade patterns have altered hugely in the past five years, but emerging markets can make this work to their advantage, writes David Tennant of the University of the West Indies, Investment Monitor
How can emerging market businesses position themselves to exploit profit-making opportunities?
The resilience of GVCs is now paramount, with significant focus being placed on geographical diversification of production sites and suppliers. Companies in the US and the EU have been advised to consider producing a substantial proportion of key goods within the region where they are consumed, and governments are contemplating policies that will promote GVC resilience, particularly in critical sectors of the economy.
Are there opportunities for companies in closely located emerging markets to benefit from these nearshoring trends – and, if so, what can business leaders do to best position themselves?
From the shifts highlighted earlier, for economies and businesses to exploit nearshoring opportunities, focus cannot be placed exclusively on the provision of low-cost labour. Where, then, would such focus be better placed?