Trade
Nearshoring
Definition
The practice of relocating business operations or manufacturing to a nearby country, typically to reduce supply chain risks while maintaining cost advantages.
Explanation
Nearshoring accelerated after COVID-19 supply chain disruptions and US-China trade tensions. Mexico is the primary nearshoring beneficiary for the US market, attracting massive automotive and electronics manufacturing investment. Poland, Romania, and Turkey benefit from European nearshoring. Vietnam and India benefit from "China+1" strategies where companies maintain Chinese operations but diversify production.