Reshoring as a Modern Form of Economic Competition Between Developed and Developing Countries

Abstract

Developed countries are still trying to overcome the consequences of the global financial economic crisis. The BRICS countries are doing this better as they have cheap resources at their disposal, on the one hand, and develop their hi-tech manufacturing via foreign investments, which strengthens the competitive power of these countries on the global market. Trying to prevent this situation, developed countries are applying such a form of a competitive struggle as returning their offshored assembly plants from developing countries to their own locations—this process was called reshoring. Using the examples of China and Russia, the authors discuss the following questions: What will developing countries do in the reshoring conditions and which measures will they take to protect their domestic markets?