Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Question

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Global value chains involve multiple suppliers, manufacturers, and distributors across different countries and continents, which makes them more susceptible to disruptions such as natural disasters, changes in government policies, or trade tensions. As a result, companies need to hold more inventory and closely monitor their supply chains to avoid product shortages and delays.

Global Value Chains Face Higher Levels of Risk and Uncertainty