Friendshoring: How Geopolitical Tensions Are Reshaping Global Supply Chains

Ira Chauhan

doi:10.36948/ijfmr.2026.v08i01.66739

Friendshoring: How Geopolitical Tensions Are Reshaping Global Supply Chains

Author(s)	Ms. Ira Chauhan
Country	India
Abstract	In recent years, global supply chains have undergone significant restructuring as geopolitical tensions increasingly influence economic decision-making. The traditional model of globalization, which emphasized efficiency, cost minimization, and extensive cross-border integration, has been challenged by a series of disruptions including trade wars, the COVID-19 pandemic, economic sanctions, and heightened national security concerns. These events exposed the vulnerabilities of highly concentrated and geographically dispersed supply chains, prompting governments and multinational corporations to reassess their dependence on politically sensitive regions. Within this context, the concept of friendshoring has emerged as a strategic approach to supply chain management. Friendshoring refers to the practice of relocating or diversifying supply chains toward politically aligned and trusted nations in order to reduce geopolitical risk and enhance resilience. This paper critically examines how friendshoring is reshaping global supply chains by analyzing its conceptual foundations, key drivers, mechanisms, and economic and strategic impacts. Drawing on existing scholarly literature, policy reports, and comparative case studies, the paper explores the role of geopolitical rivalry, economic resilience, security considerations, technological advancements, and environmental, social, and governance (ESG) standards in accelerating the adoption of friendshoring strategies. The study further evaluates the implications of friendshoring for global trade flows, global value chain structures, and business costs, while highlighting both opportunities and challenges for emerging economies. Through case studies involving the United States, the European Union, India, Japan, South Korea, Mexico, and Vietnam, the paper demonstrates that friendshoring represents a long-term structural shift rather than a temporary response to recent crises. Ultimately, the paper argues that friendshoring signals a transformation of globalization toward more resilient, regionally anchored, and strategically aligned supply chain networks.
Keywords	Friendshoring, Global Supply Chains, Geopolitics, Supply Chain Resilience, Global Value Chains, Strategic Trade Policy, Economic Security
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-01-19
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.66739

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Friendshoring: How Geopolitical Tensions Are Reshaping Global Supply Chains

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