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China Supply Chain and COVID-19
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Reference: DARDEN-GEM-0184-E
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Number of pages: 44
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Publication Date: Dec 17, 2020
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Fecha de edición: Mar 18, 2021
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Source: Darden University of Virginia (USA)
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Type of Document: Case
Description
On March 11, 2020, The World Health Organization declared the outbreak of the novel coronavirus (COVID-19) a global pandemic. The pandemic brought production, trade, and businesses to a grinding halt, as governments closed borders and implemented lockdowns and restrictions; it also caused scrutiny of global supply chain strategies. While some US companies had already begun shifting outsourcing away from China during the US-China trade war amid the recent trend of deglobalization, the pandemic deepened concerns about overreliance on importing strategic goods, including pharmaceutical products and personal protective equipment (PPE), from China.
This case starts with the pandemic development, explores public health and economic responses to the pandemic in China and the United States, and examines changes in policy and public opinion toward outsourcing in China. It provides a basis for understanding China’s social and economic institutions through the lens of pandemic controls and the changing landscape of China’s supply chains.
The case has been successfully taught in a second-year MBA elective on growth and business in emerging markets in a module examining country-level endowments, trade, and risks, as well as in a course on China in the global economy. It can also be used for EMBA or executive education classes on China in the context of global business, trade, and supply chains. Issues discussed include questions about Chinese institutions and social norms, the effects of the pandemic, fiscal and monetary policies on employment, inflation and GDP growth. The materials provide a framework for making decisions on global outsourcing and the changing relationship between China and the United States.
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Keywords
China
coronavirus
COVID
Distance learning
economic crisis
export
externality
Ghebreyesus
global supply chain
global trade
Globalization
import
near shoring
Nike
online
Outsourcing
pandemic
pandemic shock
PPE
Protectionism
Public health
Supply Chain
trade war
Trump
United States
World Health Organization