Globalized Commerce Might Prove Resilient to the Pandemic

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Globalized Commerce Might Prove Resilient to the Pandemic
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Heard on the Street: Companies might reshore some production of medical equipment for emergencies, but other international supply chains will be harder to break

The first examples of coronavirus-induced supply-chain shifts are under way. This week, Japanese consumer-products manufacturer Iris Ohyama announced it would take government subsidies to expand the production of masks domestically, adding to its existing production in China, the first company to do so.

Bringing some manufacturing home for medical or security purposes might make sense. But those expecting large-scale deglobalization and the return of domestic production for many goods might be disappointed.

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