Trade policies, firm strategies, and adaptive reconfigurations of global value chains

The recent U.S.–China trade conflicts cast new light on the role of policies in global value chains (GVCs). Contrary to expectation that restrictions lead shrinking or disruption GVCs, our article posits unintended consequences (both and agreements) are amplified by prevalence organizational complexity GVCs. We anchor argument historical evolution three classic GVCs – apparel, automobiles, electronics from 1970s present. Our framework highlights dynamic interaction between GVC-oriented firm strategies, which often has counterintuitive implications terms upgrading outcomes for countries companies involved these While provide momentum an adaptive reconfiguration firms’ strategic actions crucial modifying geographic features ways support their longevity. Firm strategies can mediate effect GVC configurations two ways: (1) firms accommodate agreements altering supply demand locations switching supply-chain partners; (2) pursue diverse upgrade chain activities, leveraging shifting geographies associated with rules.