For decades, governments and companies around the world have focused almost exclusively on tariffs as the biggest impediment to global trade. Despite tariffs dropping to a 30-year low, reform efforts have stalled in recent years and international trade remains seriously constrained. A big reason: The inefficiencies and choke-points that hobble the global supply chain turn out to be a much bigger factor than government-imposed tariffs in restricting the flow of goods and services across borders.
Together with the World Bank, Bain & Company has analyzed the business implications of supply chain barriers—everything from border delays and inconsistent product regulations to poor infrastructure and rampant corruption—presenting our findings in a report for the World Economic Forum. Our analysis demonstrates that reducing even a subset of these obstructions could increase global GDP over six times more than removing all tariffs.
Click to Add the First »