Posted by Social Science Research Network
Competition Law and Global Supply Chains
David J. Gerber( Illinois Institute of Technology)
Abstract: Global supply chains (or value chains or production networks) produce most of the manufactured products used by most people in most developed countries most of the time. They often represent a highly efficient and valuable set of economic arrangements, but they also carry a potential for harm that is often beyond the reach of current legal remedies. GSCs can shield those that produce faulty or hazardous products or artificially raise prices from legal responsibility for the harms they cause to markets, consumers and to the environment. This article focuses on one of those potential harms — those caused by anti-competitive conduct, but many of the issues also arise in relation to environmental, financial and other types of harm. The article also looks at the impact of such arrangements on emerging markets and suggests ways in which the interests of low income source countries can be better aligned with high income destination countries.
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