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Chapter 12: Global Supply Chain Management > POLITICAL AND ECONOMIC FACTORS

POLITICAL AND ECONOMIC FACTORS

Decisions to develop and manage a global supply chain network must consider the global political and economic environment. This environment is increasingly complex and turbulent, and must be evaluated on a continual basis. Political instability and hostility toward foreign businesses is a serious consideration. Currency rate fluctuations can help or hurt global operations and require careful analysis. Regional trade agreements, such as NAFTA, and trade protection mechanisms, such as tariffs and trigger price mechanisms also influence the decision to globalize operations. These factors can either significantly ease global operations or create large barriers, and must be carefully considered. Let's look at some of these in a bit more detail.


  

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