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Finding the hidden costs in broken supply chains |
Despite tariffs dropping to a 30-year low, reform
efforts have stalled in recent years and international
trade remains seriously constrained. A big reason: The
inefficiencies and choke-points that hobble the global
supply chain turn out to be a much bigger factor than
government-imposed tariffs in restricting the flow of
goods and services across borders.
Together with the World Bank, Bain & Company has
analyzed the business implications of supply chain
barriers—everything from border delays and inconsistent
product regulations to poor infrastructure and rampant
corruption—presenting our findings in a report for the
World Economic Forum. Our analysis demonstrates that
reducing even a subset of these obstructions could
increase global GDP over six times more than removing
all tariffs.
2013 |
