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The United States is in the midst of well-publicized trade disputes with China and Mexico, two of its biggest trading partners. There are also simmering trade tensions between the European Union and the United States.
Supply chains are networks of interdependent organizations that cooperate and collaborate with one another to move goods and information between producers and consumers. Global trade has become more complex as supply chains have become increasingly more global. The current tendency towards raising barriers to trade will be disruptive to supply chains, global trade and economic well-being.
Growing up in Ghana and Nigeria, and then attending college, graduate school and pursuing professional credentials after that in the United States, coupled with my professional experience since college, and my past decade pursuing a career in early-stage investing, hopefully give me a unique perspective on this topic.
Today, the most accurate way to think of supply chains is in three ways:
In sum, modern supply chains are complex systems which are susceptible to cascading unintended consequences due to policies pursued by national governments that do not take a holistic view of global trade or supply chains, and that are not guided by or based on a common understanding of the basic principles of economics.
This article first appeared on www.freightwaves.com
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