7.1 Introduction
Watch or Listen the Following Media Clip
Media 7.1 Global Value Chains: The Production Revolution of the 21st Century. [Video]. OCED. (URL: https://youtu.be/ktx2_Dzy3tM)
Learning Objectives
After reading this chapter, you should be able to understand and answer the following questions:
- Explain the concept of value chain vulnerability by reviewing current challenges
- Identify types of risks and disruptions
- Examine risk management strategies to mitigate the supply chain vulnerability
Introduction
Globalization transformed international business significantly by enhancing cutting-edge technology as well as increasing shipping trade worldwide. As a result, the connection between countries and continents became shorter and faster, impacting economic performance and gaining economic benefits. On the other hand, due to globalization and trade openness, companies faced challenges that amplified the vulnerability in Supply Chain Management and increased the risks. Supply Chain Management can promote competitiveness in the business field, and risk mitigation strategies can help organizations reduce risks such as human-made or natural disasters (Gurtu & Johny, 2021). CC BY-4.0
Assessing What You Already Know
As you answer the following questions, reflect upon what you already know about how company’s work.
Interactive activity unavailable in this format
Text-based alternative to interactive activity available in Chapter 7.6.
Overall Activity Feedback
It is true that globalization transformed international business significantly by enhancing cutting-edge technology as well as increasing shipping trade worldwide. As a result, the connection between countries and continents became shorter and faster, impacting economic performance and gaining economic benefits. Risks have always existed everywhere; however, globalization has increased the risk significantly internally and externally. Supply Chain Management can promote competitiveness in the business field, and risk mitigation strategies can help organizations reduce risks such as human-made or natural disasters.
Media Attributions and References
OECD. (2013, May 27). Global value chains: The production revolution of the 21st century [Video]. YouTube. https://youtu.be/ktx2_Dzy3tM
