In this article, we will discuss Global Trade Supply Chain (Issues). So, let’s get started.
Issues With Global Trade Supply Chain
- Disruption of Global Value Chain: Covid-19 crisis is having devastating repercussions for corporations and businesses that have benefited from economic interdependence supported by cross-border supply chains.
- China is the world’s largest production base, and lies at the heart of many supply chains. Since the outbreak of this coronavirus, many companies that had come to depend on China were hard hit.
- Halting of WTO talks: This may indicate worse days ahead for the WTO, as trade rules have worked best when the global economy is booming and isn’t facing a crisis.
- Problem Faced by Emerging and Developing Economies: The United Nations Conference on Trade and Development held that emerging and developing economies, which rely on export-led growth, will now be severely impacted as the global economy contracts and the world opts protectionism policies.
- The least developed countries whose economies are driven by the sale of raw materials will also face hard consequences.