Related Experiment Video
Updated: Jan 13, 2026

An R-Based Landscape Validation of a Competing Risk Model
Published on: September 16, 2022
Reshoring or Not? Multinational Firms' Resilience Triangle and Co-Opetitive Risk Analysis Facing Production Shocks
Baozhuang Niu1, Jiayun Liu1, Jian Dong2
1School of Business Administration, South China University of Technology, Guangzhou, P. R. China.
Abstract:
Nowadays, many multinational firms (MNFs) still stick to overseas manufacturing for the benefits of low production costs and tax planning opportunities. However, such a strategy comes along with production shocks caused by power outages, fires, strikes, and so on. In this article, we use a Resilience Triangle framework to measure the risk of production shocks during the shock and recovery time. We explore two risk management strategies for MNFs: enhancing overseas manufacturing resilience via advanced technologies and reshoring to local manufacturing. We outline the MNF's trade-offs among overseas resilience loss, production cost, tax planning opportunity, and local manufacturing subsidy. We quantify the production-and-delivery delays caused by overseas manufacturing shocks and highlight the value of advanced production technologies in mitigating shocks and accelerating recovery. We find that the MNF's production strategy may switch from overseas manufacturing to local manufacturing and then back to overseas manufacturing when the local manufacturing subsidy is not too high and the local manufacturing cost is moderate. We show that overseas manufacturing with advanced production technologies can achieve a win-win situation regarding the MNF's resilience performance and profitability, as they enable the MNF to better balance production risks and financial gains.
Related Concept Videos
Factors Affecting Workability
Design Example: Analyzing Capacity Contours for Flood Risk Assessment
Response Surface Methodology
The process of RSM involves several key steps:
Stress Concentrations in Circular Shafts
Production Efficiency
Factors Affecting Activity Coefficient
The activity coefficient value for an ion is close to one when the solution has almost zero ionic strength, i.e., when the solution shows close to ideal behavior. As the ionic strength of the solution increases from 0 to 0.1 mol/L, a...
