Reshoring to the EU and the USA: problems, trends and prospects

Abstract

Reshoring is recognized as one of the tools to achieve the goal set in Western countries to restore the role of manufacturing in the economy, its “renaissance”, stimulate innovation and increase employment. This article analyzes current trends and prospects for reshoring. Obstacles to the successful relocation of Western companies' production capacities to maternal jurisdiction were identified, the key role of which was played by the US protectionist policy and the escalation of trade conflicts. As a result, after increasing the cases of reshoring in previous years, in 2018-2019, the process of moving production facilities of western companies to other countries of Southeast Asia at lower costs received an additional impetus. It is concluded that the state policies of countries aimed at reviving their industry and the technology of the fourth industrial revolution have a significant impact on the change in the position of individual countries in the international division of labor, which gives an opportunity for “catching countries” to develop the economy and improve their position in the world trade.

Keywords

• reshoring
• reindustrialization
• value chains
• the fourth industrial revolution technologies
• protectionism
• trade wars
• trade policy
• reshoring strategies policies