1 The effects of the pandemic and Russia’s war against Ukraine have turned a spotlight on the supply side of the economy and its ability to adapt to rapid changes in demand and to navigate a seemingly never-ending sequence of adverse supply shocks.
There is a time lag in changing the layout of competitive advantages. Some labor-intensive production activities and services are usually outsourced to developing nations like China and India, while it will take a certain period of time before the developed countries (where the production cost is high) could create new jobs and develop new export advantages.