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>then the supply chains can be (re-)built similar like with networks the value of supply chain grows with its size, ie. more competing suppliers decrease the p
by trhway 1y ago
>then the supply chains can be (re-)built
similar like with networks the value of supply chain grows with its size, ie. more competing suppliers decrease the prices and increase the productivity and efficiency. It also lowers the risks of failing suppliers, and the supply risk is also an additional cost.
So, you suggest to rebuild supply chain hosted by the "technologically civilized" half+ of the world, i.e. by 4B+ of people, in a country of 340M. I.e. a supply chain at least 10x smaller, with at least 10x less competition (or the alternative - same number of suppliers 10x smaller in size). We all know what happens when there is 10x less competition. (and the alternative is even worse - the suppliers being 10x smaller in size is a loss of manufacturing efficiency which comes and goes with the scale of mass production and probably isn't possible at all as small suppliers usually quickly fail and/or scooped by larger ones, especially given that their addressable market is also 10x smaller)