Countries That Are Essential to U.S. Supply Chains

The United States is a global economic power for a reason. Invariably, our country is deeply interconnected with the entire world through the global supply chain. There are a few other nations in particular that support us more than any others do.

China

The relationship between the U.S. and China is notorious – and for good reason. Without each other, both countries would likely collapse economically. More than anything else, this is because of manufacturing. The vast majority of large U.S. corporations outsource the factory production of their products to Chinese companies. This is why just about everything has a tag on it declaring, ‘Made in China’ – everything from clothes, to shoes, to furniture, to kitchenware, to electronics, to car parts, and more are all often manufactured in China. The large amount of cheap and efficient labor is simply too profitable for most companies to pass up.

Mexico

While China is infamous for its manufacturing power, more and more the U.S. has begun to outsource to other locations. China, while a tempting option, still offers some potential problems. The bureaucracy, the distance involved, and their population control through their one-child policy means that the labor pool is actually shrinking. Mexico is one example of a glowing, growing alternative. A couple of days on a highway with a semi-truck is all it takes to deliver massive shipments between our country and theirs. Their manufacturing power has grown quite a bit recently, with many cheap, skilled laborers ready to work. Many of the world’s leading companies source their manufacturing from Mexico for that reason.

India

India is undoubtedly a global economic power, although it is sometimes not as recognized as China, Mexico, or other manufacturing giants. The most important thing about India is the potential that it has. One of the greatest and most recent examples of this is the versatile position that India took in the wake of the COVID-19 pandemic. Many companies are looking to expand there. It’s entirely possible that India could become another manufacturing titan in the coming decade.

Every major country operates a piece of the global supply chain, making up the supportive tapestry that keeps the U.S. economy afloat. But there are always going to be a few certain countries in particular that provide the United States with the products that are bought by millions on a daily basis. Ultimately, our economic base is not solely our own, but rather a global structure.

Check out this article on 5 amazing benefits of supply chain finance!

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