BITANGA, PRINCESS JOVIE MARY S.

BSA-II

Activity No. 1
The Global Economy
1. For you, which is more favorable to our economy, high import or high export of goods or services?
Substantiate your answer.

 High export of goods or services is more favorable than high import. It is a mere comparison of
inflow of cash and outflow of cash where obviously inflow of cash is better. This will lead to
surplus which adds on to the Gross Domestic Product and aggregate demand of the country which
will then lead to the betterment of the country.

2. Discuss the impact of the internet on supply chain management.

 It is being used in managing the major components of supply chains including transportation,
purchasing, inventory management, customer service, production scheduling, warehousing, and
vendor relations. In other words, the Internet integrated the supply chain management in a whole
new level.

3. Differentiate internal supply chain from extended supply chain.

 Internal supply chain refers to the chain of activities within a company that concludes with
providing a product to the customer while extended supply chain, extends the management scope
beyond the business processes covering the supply chain.

4. Give one example of supply chain and explain briefly. (Note: except for the given examples in
question #3.
Generic Supply Chain

 Through logistics, the materials are taken to a manufacturer, or probably various manufacturers
who refine and process them into a finished product. Afterward, it goes to a distributor that
wholesales the finished product, which is next delivered to a retailer. The retailer sells the product
in a store to consumers. Once the consumers buy it, it completes the cycle, but it’s their demand
that then goes back and drives the production of more raw materials, and the cycle continues.

5. What is global value chain? Give one example.

  Global value chain can be simply understood as the sequence of all functional activities required
in the process of value creation involving more than one country.
 Textile and apparel industry. Designs are done by brands in Western Countries while production
is mainly in Southeast Asian countries and more recently in Africa. Sales of the products is then
in retail stores internationally.

6. What is the importance of participation of other country to procure or acquire raw materials to
them to produce a certain product?

 It can be known that no country has every necessity needed in making a certain product. In short,
every country needs to work hand in hand depending on the availability and capability of each to
bring a certain product to its completion.

7. Give 3 advantages and 3 disadvantages in increasing competition for commodities.

 Advantages:
 Stability in prices
 Availability of all types of goods
 Exchange of technical know-how and establishment of new industries

 Disadvantages:
 Storage of goods
 Mis-utilisation of natural resources
 Impediment in the development of home industries

8. Why does surplus known as the positive indicator for the economic health of a country?

 It adds on to the Gross Domestic Product and aggregate demand of the country which will then
lead to the betterment of the country.

9-10. Give 1 good and 1 bad impact of COVID-19 pandemic on the Supply Chain Management.
Bad Impact:
The required resources for supply network mapping are expensive.
Good Impact:
Supply chain disruption is often not part of supplier performance metrics.