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Only with government intervention. If company A switches to more expensive domestic manufacturing while company B stays on the other side of the planet, B can u
by Mountain_Skies 7y ago
Only with government intervention. If company A switches to more expensive domestic manufacturing while company B stays on the other side of the planet, B can undercut A. Next time there is a supply disruption, A will be able to beat out B, but A might be out of business by then. Government intervention would be required to even the field, maybe through tariffs or importation prohibitions.
An alternative would be for company A to appeal to the public (or business customers) to buy from them at a higher price because it helps keep society from being disrupted by supply chain interruptions. That might work short term but cheap prices seem to win out over concerns of societal wide benefits in the long run.