23008_Nearshoring Report

N E A R S H O R I N G

WHY DID SO MUCH

Over the past 40 years, global trade in goods boomed. Developments in logistics – including containerisation and the widespread adoption of ‘just in time’ (JIT) strategies and information and communication technology (ICT) – reduced transaction costs of doing business further away. Political factors such as the establishment of the World Trade Organisation, implementation of trade and investment agreements and encouragement of foreign direct investment meant that businesses have been able to expand their operations to wider geographies.

PRODUCTION MOVE FROM EUROPE TO OTHER LOCATIONS?