A Double Edge to International Supply Chain
A new research report by the National Center for the Middle Market and the Center for International Business Education reveals that U.S. middle market companies are thriving in international supply chains. Revenue growth and cost savings are top benefits for sellers and purchasers, with expansion into new markets on the rise. Challenges include longer lead times and quality control, as well as a need for employees with international supply chain expertise.
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FAQs: A Double Edge to International Supply Chain - CPA Practice Advisor
Frequently Asked Questions: A Double Edge to International Supply Chain - CPA Practice Advisor
1. What is meant by a "double edge" to international supply chains?
Answer: The term "double edge" in international supply chains likely refers to the potential benefits and risks associated with global sourcing and selling. While international supply chains can expand market reach and access to goods, they also bring challenges such as increased complexity, regulatory compliance, and vulnerability to global disruptions.
2. How does the U.S. middle market benefit from international supply chains?
Answer: The U.S. middle market benefits from international supply chains primarily by increasing revenue through the purchasing and selling of products and goods globally. This expansion allows for a larger customer base and access to a more diverse range of products.
3. What are some challenges faced by companies involved in international supply chains?
Answer: Companies involved in international supply chains may face challenges such as managing logistics across different countries, dealing with customs and tariffs, ensuring compliance with international trade regulations, mitigating the risk of supply chain disruptions, and facing currency fluctuation risks.
4. Have the risks associated with international supply chains increased recently?
Answer: While the article does not provide specific details, it is generally understood that risks can increase due to factors like global political instability, trade disputes, pandemics, and natural disasters. These events can cause disruptions in the supply chain, leading to delays, increased costs, and reduced reliability.
5. What strategies can businesses adopt to manage the risks of international supply chains?
Answer: Businesses can adopt strategies such as diversifying their supplier base, investing in supply chain visibility and analytics, developing risk management plans, holding safety stock, and considering reshoring or nearshoring some supply chain activities.
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