There are many factors which contribute for global commerce and
supply chain flows.Global commerce is expanding production and
trading towards foreign countries and selling goods overseas.Supply
chain flow is managing and distributing raw materials,capital
funds,output,etc to the branches of companies situated in various
countries.If supply chain flow is feasibe then it is easy to
acquire global commerce.In supply chain flow,all the
funds,resources and raw materials are distributed accordingly among
branches and then those companies start producing and selling
goods.At times,company in home country derives a suppy chain flow
where it decides the level of output to be sold in overseas
market.This leads to supply chain flow and global commerce.Global
commerce helps a country to achieve higher gross domestic product
and maximum export rate.Even healthy relations are maintained among
countries.Following are the contributing factors for global
commerce and supply chain flows:
- Availability of manpower:If a country has plenty of human
labour then it is a major factor which contributes towards global
commerce.Availability of maximum manpower helps in increasing
production and output level.The excessive goods are exported to
foriegn countries.This helps in acquiring global commerce.It even
provides work for many people in the country.
- Modern machinery and techniques:If modern machinery and
techniques are available in a country,then that country can achieve
global commerce.Usage of modern machinery and new techniques in
process of production helps in attaining maximum output and this
output can be distributed among various countries by supply chain
flow and higher sales can be acquired.
- Infrastructure facilities:Country with best infrastructure and
good transport facilities can get globalised.Most of countries do
not expand their trading activities to overseas market.This is due
to non-availablity of appropriate infrastructure.If a country has
good infrastructure then it would be easy to carry out trading
activities.Even supply flow of output to various country would not
delay if there are good transport facilities.
- Fund management team:In case a country has best fund management
teams or individuals who plan and distribute funds accordingly then
that country can go for supply chain flow and global commerce.These
fund management teams or individuals who efficiently disributes
funds,help a domestic company to expand its activities to overseas
market.As a part of supply chain flow,they create strategies where
resources,raw materials,labour,output is estimated and supplied to
the various countries.The factor of best fund management teams
contributes for global commerce and supply chain flow.
- Moderate trade restrictions:If countries have moderate or less
trade restrictions,then export-import activities can be carried out
effectively and efficiently.This helps in hassle free global
commerce and supply chain flow as strict rules and lengthy
procedures might delay the supply of output.Countries can improve
their trading activities if less rules and regulations are
imposed.
- Excessive resources:If resources are available in large,then
the country can use supply chain flow to supply and sell resources
to deficient countries.Even this helps in achieving global
commerce.Those resources can be exported or sold in overseas
market.
Hence these are the factors which contribute for global commerce
and supply chain flow.If all these factors are available,then they
contribute in attaining global commerce.If supply chain flow is
managed then global commerce is easily acquired if there are less
restrictions on trade.Therefore,presence of all the mentioned
factors will contribute towards global commerce and supply chain
flows.