Final answer:
Internal supply chain management helps link high-level planning with operational activities, enabling better coordination across the value chain. This integration is key for responding to market changes and managing disruptions effectively.
Step-by-step explanation:
Internal supply chain management is indeed designed to integrate higher level planning and location decision-making with lower-level operational activities within the same supply chain, by creating a more seamless flow of information and materials. This involves sophisticated coordination between various stages of the value chain, such as design, procurement, manufacturing, and distribution. As part of this, firms are splitting up the value chain and engaging in intra-industry trade, which allows companies to benefit from specialization and economies of scale, as well as from improvements in technology and transportation systems. This level of integration helps firms respond more effectively to market changes and manage supply chain disruptions, which is particularly important for maintaining operations during national emergencies and protecting labor rights.