Case Scenario: Global Dynamics Inc. sources raw materials from multiple countrie

Case Scenario:
Global Dynamics Inc. sources raw materials from multiple countries, assembles its products in a central manufacturing facility, and then distributes them globally. However, recent trade disputes and protectionist policies have led to increased tariffs, export restrictions, and logistical challenges. Additionally, the pandemic has highlighted vulnerabilities in the existing supply chain, prompting the company to reassess its strategies to adapt to the evolving economic landscape.
Key Issues:
Tariffs and Trade Barriers: Evaluate the impact of recent tariff increases and trade barriers on Global Dynamics Inc.’s production costs and market competitiveness. What economic theories and principles can be applied to analyze the implications of protectionist measures on the company’s profitability and pricing strategies?
Supply Chain Resilience: Assess the vulnerabilities exposed by the COVID-19 pandemic in the global supply chain and identify strategies for enhancing supply chain resilience. How can Global Dynamics Inc. diversify its sourcing, mitigate risks, and build a more resilient supply chain structure to withstand future disruptions?
Currency Fluctuations and Exchange Rate Risks: Analyze the potential risks associated with currency fluctuations, given the international nature of Global Dynamics Inc.’s operations. How can the company effectively manage exchange rate risks, and what financial instruments or strategies can be employed to minimize the impact on profitability?
Market Access and Regulatory Compliance: Examine the challenges related to market access and regulatory compliance in the context of changing trade policies. How can Global Dynamics Inc. navigate diverse regulatory environments and ensure compliance while maintaining its global market presence?
Technology and Automation: Explore the role of technology and automation in mitigating the impact of trade tensions on production costs and efficiency. What technological advancements can be leveraged to optimize manufacturing processes, reduce dependence on specific regions, and enhance overall operational efficiency?