Title: Locational factors and the reindustrialisation process in the USA; reshoring from China

Authors: Behrooz Gharleghi; Asghar Afshar Jahanshahi; Tobias Thoene

Addresses: Dialogue of Civilisations Research Institute gGmbH, Franzosische Str. 23, 10117, Berlin, Germany ' CENTRUM Católica Graduate Business School, Lima, Peru; Pontificia Universidad Católica del Perú, Lima 15023, Peru ' Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Bukit Jalil, 57000, Kuala Lumpur, Malaysia

Abstract: The main goal of this paper is to analyse the influence of locational factors on the reindustrialisation process in the USA through reshoring from China. The applicability of traditional location theories and their locational factors are also examined here. This paper evaluates the development of labour cost, agglomeration effect, land cost, and raw material cost over recent years as factors encouraging the reindustrialisation process. Transportation cost and the impact of political institutions offer contrasting pictures. While high intermodal freight costs in the US and an appreciating Yuan promote the reindustrialisation process, low ocean shipping costs and enormous business incentives in China weaken the positive effects. All in all, it is concluded that most locational factors have changed in favourable ways for the USA and thus made manufacturing in the USA comparatively more attractive.

Keywords: China; USA; reindustrialisation; reshoring; globalisation.

DOI: 10.1504/IJBG.2020.105173

International Journal of Business and Globalisation, 2020 Vol.24 No.2, pp.275 - 292

Received: 23 Dec 2017
Accepted: 20 May 2018

Published online: 05 Feb 2020 *

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