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“Digitally enabled supply chains initially increased efficiency and dramatically shortened lead times. Capital was mobile; labor, less so. Economic activity (production, research, design, etc.) moved to any accessible country or region that had relatively inexpensive labor and human capital.” quote by Michael Spence
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“Digitally enabled supply chains initially increased efficiency and dramatically shortened lead times. Capital was mobile; labor, less so. Economic activity (production, research, design, etc.) moved to any accessible country or region that had relatively inexpensive labor and human capital.”

Michael Spence

About This Quote

Source Article: Economic Implications of Digital Supply Chains, 2020

Digital tools boost efficiency and cut lead times, but labor mobility lags, causing production to shift to low‑cost regions.

In simple terms: Digital efficiency moves production to cheap labor areas.

Key Takeaway

Leverage digital tools while addressing labor disparities.

Themes

efficiency globalization labor technology

Mood

analytical pragmatic

Type

economic strategic

When to use this quote

  • manufacturing
  • outsourcing
  • policy planning
  • investment strategy

Key Concepts

comparative advantage human capital digital transformation

Questions to Reflect On

  • What safeguards can protect workers in shifting supply chains?
  • How can firms balance speed with labor equity?
A Different Perspective

Risk of over‑reliance on low‑cost labor may cause instability.

2.8 out of 5 (8 ratings)

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