Journal of International Economics Research
Journal DOI
3070-5665ISSN (Online)
Volume 2 , Issue 2 , PP: 27-34, 2025 | Cite this article as | XML | Html | PDF | Full Length Article
Summera Khalid 1 *
Doi: https://doi.org/10.54216/JIER.020205
The post-pandemic period has led to a major reorientation in international economics, shifting the focus of global trade from cost efficiency to structural resilience. This study examines four key factors—supply chain diversification, reshoring initiatives, logistics disruptions, and cost shocks—to explore the transition from the era of "Fragile Efficiency" to a system focused on overall viability. Drawing on global trade data from 2024–2026 and analytical frameworks provided by the IMF, the research introduces the concept of the Resilience–Efficiency Frontier (REF). The findings show that moving from Just-in-Time (JIT) to Just-in-Case (JIC) manufacturing helps reduce the volatility caused by the Bullwhip Effect but also creates a persistent form of "Complexity Inflation." Empirical results indicate that firms are now incurring a "Resilience Premium" of 12–15% to protect their production and distribution networks. The study also emphasizes that trade is no longer purely economic but is increasingly connected to national security and environmental regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM). This marks a clear shift from the deflationary trends that characterized global trade in the past.
International Economics , Resilience&ndash , Efficiency Frontier (REF) , Just-in-Time (JIT) , Just-in-Case (JIC) , Supply Chain Diversification , Resilience Premium , Complexity Inflation , Carbon Border Adjustment Mechanism (CBAM) , Agentic AI , Global Value Chains (GVCs)
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