What changes do/could the threat of and implementation of new tariffs by the United States make...

What changes do/could the threat of and implementation of new tariffs by the United States make on a company's supply chain decisions in relationship to facility location and suppliers?

Expert Solution

Threat of implementing new tariffs by United State can change the way of operation of a supply chain decision. If the tariff implemented additional burden on imports or any other activity then the supply chain decisions would be preferred to an alternative locations where availability of the tariff is relatively less. As this type of availability increase the overall expense in the supply chain management, organisations would ship to other countries that would reduce the overall economic valuation of America in terms of proper service generation. Due to unavailability of business opportunities, this organisation would face a drastic impact in its operation and this type of unreliability would decrease the overall chance is a positive outcome in the operation economic environment.
As company could be affected by shifting its supply chain to another place, suppliers and other service providers would also be affected due to implementation of new tariffs by United States of America. For creating a balance, understanding a location importance as well as distance from the supplier from the nearest possible location where tariffs are relatively low would be the main criteria of choosing new location.

P.S.- please leave a comment if any explanation is needed.

keosha answered 1 year ago

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