friendshoring
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Friendshoring, or allyshoring, is the act of manufacturing and sourcing from countries that are geopolitical allies, such as members of the same trade bloc or military alliance. Some companies and governments have pursued friendshoring as a means to continue accessing international markets and supply chains while reducing geopolitical risks. However, friendshoring can also have downsides, including more expensive manufacturing and reduced economic output.
~6 min read
Encyclopedic overview
11 sectionsContents
- Origin
- Shift in U.S. trade policy
- Advantages
- Geopolitics
- Efficiency
- Disadvantages
- Growth
- Practicality
- Conflict
- See also
- References
Friendshoring, or allyshoring, is the act of manufacturing and sourcing from countries that are geopolitical allies, such as members of the same trade bloc or military alliance. Some companies and governments have pursued friendshoring as a means to continue accessing international markets and supply chains while reducing geopolitical risks. However, friendshoring can also have downsides, including more expensive manufacturing and reduced economic output.
== Origin == Bonnie Glick first used the term "allied shoring" at the start of the COVID-19 pandemic while she was serving as the Deputy Administrator of the United States Agency for International Development. In June 2021, the term "ally-shoring" was used in an article by the Brookings Institution.
Excerpted from Wikipedia’s “friendshoring” article, available under the CC BY-SA 4.0 licence.