Harvard professor examines economic foundations of global supply chains
Harvard Business School professor Willy Shih explores the economic realities of global supply chains and the market's response to political trade interventions in his latest book.
In a recent discussion with The Verge, Willy Shih, a professor of management practice at Harvard Business School, analyzed the economic principles driving global supply chains. His latest book, "Where Does My Stuff Come From? The Powerful Economics Behind Global Supply Chains," argues that market forces frequently override political efforts to reshape manufacturing patterns.
Shih noted that when governments impose tariffs or trade barriers, manufacturers typically respond by shifting assembly to new regions rather than "reshoring" production to the U.S. He explained that companies continue to rely on global processing networks because they are fundamentally more cost-effective, a reality that often contradicts political rhetoric surrounding deglobalization.
Looking at the broader industrial landscape, Shih emphasized that the current surge in AI infrastructure demands extensive logistical support. He warned that policymakers often ignore these foundational economic requirements, which can lead to unrealistic expectations for large-scale manufacturing projects. The insights serve as a reminder that the global economy remains tethered to complex supply chains driven by fiscal incentives.