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The economic impact of tariffs: Adaptations by multinationals and traders to mitigate tariffs

  • 1.  The economic impact of tariffs: Adaptations by multinationals and traders to mitigate tariffs

    Posted 04-07-2025 21:52

    Ordinarily, an author should hesitate in publicizing his article, but because (i) the question of "Tariffs" is convulsing the world, and (ii) there are no Business or International Management publications addressing this topic, I am making an exception.

    "Assessing the economic impact of tariffs: Adaptations by multinationals and traders to mitigate tariffs" can be accessed full-text at 
    https://www.emerald.com/insight/content/doi/10.1108/ribs-01-2025-0013/full/html  
    or through Google Scholar using my author's name or "Tariffs" with "Custom Range (2025) – (2025)" .

    The article is a scholarly review of all the arguments pro and con tariffs (however weak or specious some may be) and assesses their economic impact.

    How multinationals might mitigate the impact of tariffs using adaptations, such as marginal increases in inventories, diversification of suppliers by number and geography, passing through price increases depending on price elasticity of demand, deepening relationships with suppliers, non-market strategies and lobbying, investing in more automation, product and process innovation and a reduction in service or product varieties, is treated next.

    Finally, the underlying causes of globalization's discontents are treated with a novel approach in an Appendix. It also punctures the myth that the US has lost its manufacturing mojo.

    It is time management scholars addressed this timely topic.



     



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    Farok Contractor
    Distinguished Professor in Management and Global Business
    Rutgers University
    Flemington NJ
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