Photo AI
A mobile phone manufacturer decides to globally source inputs that they had previously produced themselves - HSC - SSCE Business Studies - Question 11 - 2021 - Paper 1
Question 11
A mobile phone manufacturer decides to globally source inputs that they had previously produced themselves. Which of the following shows possible negative effects o... show full transcript
Worked Solution & Example Answer:A mobile phone manufacturer decides to globally source inputs that they had previously produced themselves - HSC - SSCE Business Studies - Question 11 - 2021 - Paper 1
Step 1
Delays in the supply chain and increased transport costs
Answer
When a mobile phone manufacturer decides to globally source inputs, it often leads to complexities in the supply chain due to longer shipping times and customs procedures. These can result in unforeseen delays. Additionally, sourcing from a global market may increase transport costs, especially if components need to be shipped over long distances, impacting the overall production cost.