Abstract
This study examines the net impact of exchange rate volatility on the industry-level geographic diversification of global supply chain network through trade data. The findings show that exchange rate volatility has an inverse yet nonlinear relationship regarding the choices of export destinations and import origins at the level of industries. This study suggests that firms consider potential exchange rate volatility in the design of supply chain network and develop resilient portfolios of customers and suppliers. The policy implications are discussed.
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More From: International Journal of Logistics Economics and Globalisation
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