Manufacturing firms are becoming more global and forming global supply chain networks in their pursuit of lower production costs and emerging markets including those in Asia. The global supply chain network consists of domestic as well as international suppliers, factories, and markets. Then, the supply chain network applies customs duties when parts and products are transported across overseas borders. In addition, awareness about several cross-border treaties such as regional free trade agreements (FTAs) and the Trans-Pacific Partnership (TPP), is indispensable when designing a global supply chain network. The current fluctuations in oil and energy price also cannot be ignored.
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Nakamura et al. (2019) studied this question.
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