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Friendshoring

Trading Term

Friendshoring is a strategic approach where countries or companies relocate their supply chains to nations with shared values and stable political relationships. This practice aims to mitigate risks associated with geopolitical tensions and trade disruptions. By aligning with friendly nations, entities can reduce dependency on adversarial countries, thus ensuring a more reliable supply chain. Tariffs play a crucial role in this strategy, as they can be adjusted to favor trade with allied countries, thereby incentivizing friendshoring. This approach not only enhances economic security but also fosters stronger international alliances, promoting a more resilient global trade network.

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