Trade Wars, International Supply Chains, and Business Associations: Historical Evidence from Norway and Portugal

Abstract This article examines the 1921–1923 trade war between Norway and Portugal as a historical case for exploring business responses to deglobalization and trade disruption. Focusing on the international supply chains (ISCs) of port wine and salted and dried cod, it investigates how business actors contributed to the recoupling of ISCs after a trade war. Drawing on a history‐to‐theory methodology and extensive archival research, the study offers new theoretical insights into how institutional environments shape business agency during periods of deglobalization. It develops a typology of trade wars structured around two dimensions: the degree of coordination within ISCs and the economic reach of the conflict. The findings demonstrate that, in processes of symmetric recoupling , where both nations restore disrupted supply chains on equal terms, business associations as well as multinational enterprises (MNEs) play a pivotal role in business diplomacy and supply‐chain reconstruction. The symmetric nature of the post‐trade war recoupling fosters mutual recovery and enhances long‐term competitiveness for the industries involved. The typology proposed also provides a framework for analysing other historical and contemporary trade wars across diverse geopolitical settings.