➤ Why do companies reshore or nearshore because of creative destruction?
Firms reshore or nearshore when creative destruction alters relative costs, risks, or access to technology. Rising automation reduces labor-cost advantages, while supply-chain shocks, tariffs, or demand for speed push firms closer to end markets. Reshoring supports faster innovation cycles, shorter lead times, and supply resilience, but raises production costs and requires capital investment and workforce upskilling.
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