A modern product can cross borders many times before reaching a customer. Raw materials, components, software, assembly, shipping and marketing may all occur in different places.
This specialization lowers costs and allows firms to benefit from expertise and scale. It also creates vulnerability. A disruption in one critical input can delay production elsewhere, even when demand remains strong.
Companies and governments are increasingly balancing efficiency against resilience. Holding more inventory, using multiple suppliers or producing some inputs domestically can cost more in normal times but reduce the damage caused by unexpected shocks.