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I think the efficiencies of manufacturing in one country still outweighs the benefits of diversification. I'm not an expert on these matters but it just seems o
by 1-6 6y ago
I think the efficiencies of manufacturing in one country still outweighs the benefits of diversification. I'm not an expert on these matters but it just seems obvious. You'll have to move around materials and there are trade/geopolitical issues at play there. Japan and Korea briefly had a dispute in 2019 and Japan stopped 3 chemicals from going to Korea. This affected their semi production.
- Osiris 6y agoThat's my point is that it's so concentrated it takes very little to completely disrupt the entire industry. The question to me is are the increased costs of diversification worth the risk of temporary (or maybe permanent) disruptions to manufacturing. Then again, when I studied political science and economics there was a common belief/theory that this sort of increased interdependency between countries (globalization) would decrease the likelihood of war and increase opportunities for democracy. So maybe it's a good thing.
- 1-6 6y agoIn my opinion, under ideal circumstances will you have interdependency between countries with everyone sharing a part in the process. What will end up happening is that countries will split into two ideological ‘nations’ like in Axis vs Allies.