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Thailand’s 2011 flooding: Its impacts on direct exports and global supply chain disruptions

thailand flooding

Fragmentation and agglomeration forces, together with the concept of just-in-time production, have made it possible for many countries to establish manufacturing production through vertical specialization and economies-of-scale even though they do not have a comparative advantage at the level of all manufacturing production. This is true for Thailand today, much as it previously was in Taiwan Province of China and, some decades before that, the Republic of Korea. As Thailand becomes a part of this production sharing and global production networks, it also becomes increasingly evident that supply chain disruptions could be a serious threat. Natural disasters and some types of man-made catastrophes can endanger the just-in-time approach to procurement and production because any disruptions to a single node of production may lead to a breakdown of the entire production chain.

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