Will Coronavirus Change the World Economy?

Just look at a car coming off the assembly lines in Sindelfingen or Wolfsburg, Germany: be it an E-Class Mercedes or a Golf VW – Made in Germany is no longer really manufactured in this country. Only about a quarter of all spare parts continue to be from car manufacturers themselves, with the rest being provided by multiple suppliers. Spare parts come from all over the world. This is a huge logistical challenge. Supply chain management is not a simple undertaking. And if we say that a container with spare parts made in China does not arrive at the port of Hamburg, Sindelfingen and Wolfsburg could soon be a major problem. Such scenarios are currently being analyzed by many companies in Germany and beyond. Car manufacturers deal with this issue and so do car manufacturers, small and medium-sized businesses and firms listed on the German Stock Exchange Index (DAX). The topic has also gone viral in the health care system in Germany, where the new Korona virus has made the supply shortages even worse. Many are wondering if we are already experiencing the last beginning of globalization. Should we reassess the global division of labor? Should nations return production to the country? Are there any alternatives to the world factory conceptualized over the last three decades? Repatriation of production It is the first disappointment for all who believe that all the current problems in the world are caused by globalization: there is no easy solution. Because globalization has led to a great increase in wealth and prosperity, and not just to industrialized nations. Some nations have managed to break free from their status as developing countries, and by developing as an expanding economy, they have managed to bring millions and millions of people out of extreme poverty. Problems related to working conditions, or social and environmental standards should certainly not be ignored. But if someone in the West wants production to be repatriated, if that happened you would lose many jobs elsewhere.