X hits on this document

PDF document

      - page 44 / 47

126 views

0 shares

0 downloads

0 comments

44 / 47

Industry

Food Computers/electronics Machinery Chemicals Metals Mining Electrical equipment Nonmetallic minerals Textiles/apparel Plastics/rubber products Utilities Motor vehicles and parts Retail trade Wholesale trade Petroleum/coal products

Exports to Foreign Affiliates Exports to Non-affilates Imports from Foreign Affiliates Imports from Non-affiliates

  • -

    100

  • -

    50

  • 0

    50

$billion

Supply chains have an additional effect that is related to the macroeconomy. If an economy drops into recession or a business contacts, some of the layoffs in a supply chain can occur overseas. Adjusting production by slowing imports has less impact on the U.S. labor force than laying off workers in the United States. The supply chain linkages, however, also imply that a recession in a country as large as the United States may also cause a slowdown in economic activity elsewhere. This coupling of economies in the global marketplace may contribute to the synchronization of recessionary economic conditions and make global recovery even more difficult.

At the microeconomic level, as indicated in the policy discussion above, the impact of policy depends partly on the nature of the policy, itself, but it also depends on how and where along a supply chain the policy is applied. In a typical supply chain, policy points arise all along the process from initial research, branding and design to parts procurement, assembly, packaging, shipping and to final sale. The question is whether specific governmental actions intended to accomplish one goal, actually are able to accomplish that goal given the globalized nature of the industry and profit maximizing behavior of businesses.

Document info
Document views126
Page views126
Page last viewedSun Dec 04 13:32:44 UTC 2016
Pages47
Paragraphs481
Words21062

Comments