Which describes potential downsides such as delays, supply risks, job loss, and dependence on other countries?

Which describes potential downsides such as delays, supply risks, job loss, and dependence on other countries?

• A. Advantages of importing/global sourcing
• B. Interdependence and global supply chains
• C. Disadvantages of importing/global sourcing
• D. Economic benefits of TNCs

Answer: (C)

The described downsides—delays from longer shipping times, supply risks from disruptions, potential job losses in the domestic economy, and greater dependence on other countries for inputs—are the negative consequences that come with importing or global sourcing. This is exactly what “disadvantages of importing/global sourcing” refers to: when you source from abroad, you can face longer lead times, exposure to international risks, and impacts on local employment, all of which can increase vulnerability and costs. In contrast, talking about advantages of importing/global sourcing would emphasize benefits like lower costs or access to specialized inputs. Interdependence and global supply chains describes the broader network of connections between economies, which can include both risks and benefits but isn’t specifically pinpointing the downsides listed. Economic benefits of TNCs focuses on positive impacts of multinational corporations, not the downsides described here.

The described downsides—delays from longer shipping times, supply risks from disruptions, potential job losses in the domestic economy, and greater dependence on other countries for inputs—are the negative consequences that come with importing or global sourcing. This is exactly what “disadvantages of importing/global sourcing” refers to: when you source from abroad, you can face longer lead times, exposure to international risks, and impacts on local employment, all of which can increase vulnerability and costs.

In contrast, talking about advantages of importing/global sourcing would emphasize benefits like lower costs or access to specialized inputs. Interdependence and global supply chains describes the broader network of connections between economies, which can include both risks and benefits but isn’t specifically pinpointing the downsides listed. Economic benefits of TNCs focuses on positive impacts of multinational corporations, not the downsides described here.