Lecture
This lecture delves into the hidden exposure of US supply chains to foreign suppliers, particularly China, which is much larger than conventional trade data suggest. It explores the systemic shocks that disrupt supply chains, such as climate change and digital disruptions, emphasizing the need for policy to mitigate these impacts. The instructor argues that concerns and policies regarding supply chain disruptions should focus on individual products rather than the entire manufacturing sector. The lecture also covers the historical conceptualizations of global trade, from ancient civilizations to mercantilism, highlighting the importance of simplifying complex realities through mental models and the potential blind spots of oversimplification.