“The EU’s Open Strategic Auto no my fro m a central banking perspective. Challenges to the mo netary po licy landscape fro m a changing geo political enviro nment”. Occas ional Document, IRC Wo rkstream o n EU’s Open Strategic Auto no my. 2  Baldwin, R., Freeman, R., and Theo do rakopoulos, A. (2022). Ho rses fo r co urses: Measuring fo reign supply chain expo sure. NBER No . w30525. 3  M. Khalil and M.-D. Weber (2021). “Chinese supply chain sho cks”. MPRA Paper No 110356. 4  Ciani, A. and M. Nardo (2022). “The position of the EU in the semiconductor value chain : Evidence o n trade, fo reign acquisitio ns, and o wnership”. Wo rking Paper in Eco nomics and Finance 2022/3, April, Jo int Research Centre. 2  Trade in energy goods is a prime example of concentration. In 2020, the EU imported 60% of its energy, with four countries providing 70% of gas imports, of which 40% came from Russia. The consequences of a highly concentrated supply of a key raw material are readily visible today. Last year’s surge in gas prices (which was much sharper in the EU than in the United States), the drastic reduction in supply from Russia and the difficulties in replacing gas with other energy sources have all exerted strong inflationary pressures and have created one of the main risks for the European economy in the short and medium term.
Four, the impact of this process on prices and productivity will depend crucially on the type of economic policies that are adopted. 22  Kataryniuk, I., Pérez, J. J., and Viani, F. (2021) . (De-) Glo balisation o f trade and regio nalisation: a survey o f the facts and arguments. Occasio nal Paper - Banco de España , 2124. 23  See Mio n, G., and Zhu, L. (2013). Import co mpetition fro m and offshoring to China: A curse o r blessing fo r firms?. Jo urnal o f Internatio nal Eco nomics, 89(1), 202-215, or Carluccio , J., Cunat, A., Fadinger, H., and Fo ns-Rosen, C. (2019). Offsho ring and skill-upgrading in French manufacturing. Jo urnal o f International Eco nomics, 118, 138-159. 9  Protectionist measures can lead to no-win situations for all agents involved, in particular in less developed countries that rely on trade and financial openness to access new technology and external financing. Moreover, evidence suggests that the growing use of subsidies by major economies has important distorting effects on the allocation of resources, highlighting that their use sho uld be limited to securing the specific inputs and raw materials needed for the development of key technologies. The same can be said for policies that aim to shorten the supply chain, or “friend -shoring”. In general, the literature points out that participation in global value chains allows companies to better manage unexpected demand shocks compared to a world in which production is predominantly national or regional.