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ADVICE

Onshoring and Profits

Companies will pursue onshoring or de-globalization only if it increases profits.
If manufacturing a product domestically becomes twice as expensive, the company will lose business to cheaper international alternatives.
Thus, there will be less onshoring-driven inflation than anticipated.
Onshoring occurs when transport savings outweigh the increased labor costs.
Consider profit motive when evaluating onshoring decisions.

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