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Chapter 11
DOI: 10.4018/978-1-7998-7513-0.ch011
ABSTRACT
This chapter aims to critically analyze the implications that the national protectionist policies have on
the global supply and value chains and the relocation of production. The analysis is based on the as-
sumptions that the global economy is facing the possibility of decoupling of many trade connections,
and this trend favors deglobalization processes that have long been promoted by populism, nationalism,
and economic protectionism. It is concluded that global supply, production, and value chains, although
being economically efcient, are no longer any more secure under national protectionist policies, and
therefore, the relocation of production processes is mainly due to the increase in the level of income and
wages of the developing countries that are the destinations, which reduce the advantages of relocating.
INTRODUCTION
This analysis shows expansive periods of free trade alternate with other periods in which protection-
ist measures and the relocation of production are part of a process that is called deglobalization and is
characterized by a reduction in export growth that is compensated with increased consumption of the
domestic market to defend national interests. Some developed economies have trade imbalances with
negative effects on less developed countries.
Critical Analysis of the
Relocation Strategy of
Production Between National
Protectionist Policies, Global
Supply, and Value Chains
José G. Vargas-Hernández
https://orcid.org/0000-0003-0938-4197
University Center for Economic and Managerial Sciences, University of Guadalajara, Mexico