"The pandemic has reignited debate over global assembly lines that stretch around the world

Have you ever visited a store only to find empty shelves rather than the product you wanted to buy? This might have been because of disrupted supply chains. Usually, these chains operate seamlessly in the background to bring you the goods you need. However, when supply chains break down we all notice. So what are these vital parts of the global economy?

Supply chains are the assembly lines that deliver goods for final consumption. Think about the laptop, desktop, tablet, or phone on which you are reading this article. These products came to be thanks to a multitude of different inputs that traveled through a complicated supply chain before arriving in your hands as a finished good. This journey involved product development, sourcing the raw materials, assembling the parts, testing the end product, and shipping it to you. That way, you can think of the supply chain as an assembly line that makes possible the product that you, the consumer, want to buy."

The article was published in the IMF's Finance & Development magazine in English. Click here to access the article.

Source:DIEGO A. CERDEIRO, NIELS-JAKOB H. HANSEN, FINANCE & DEVELOPMENT, JUNE 2022

Illustration: ISTOCK / RASTUDIO