Global trade slows, but continues to be robust in pockets

An article in the Wall Street Journal (October 1, 2012) describes the slowing of global trade flows. The Los Angeles port claims a 10.5 % drop in US exports shipped, while the Shanghai port reports a 6 % slowdown. While Europe demand is dropping, demand in Latin America is growing for a toy helicopter company. The stronger Japanese yen, Chinese growth slowdown are impacting Sri Lanka – a new destination for apparel manufacturing that is a cheaper producer than China. Given the shifting demand growth locations, how should companies plan their marketing to access these world markets ? Given the shifts in production locations to keep costs competitive, how should companies plan their supply base to adjust ? The article claims that global trade growth has been faster than the global economy and that slowdowns in India and China reflect overall trends – does this suggest a different approach to thinking about global supply chain locations to adapt ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , . Bookmark the permalink.

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