Question

The supply chain always occurs within a single organization. TRUE OR FALSE

Answer 1

The claim that supply chains always occur within a single organization is false; supply chains often extend internationally, involving intra-industry trade and splitting up of the value chain across different locations.

Step-by-step explanation:

The statement that the supply chain always occurs within a single organization is FALSE. In modern economics, supply chains often extend beyond a single organization and can span across multiple countries. This phenomenon is related to concepts like intra-industry trade, which refers to the international trade of goods within the same industry, and the splitting up of the value chain, where many of the different stages of producing a good happen in different geographic locations. For instance, the manufacturing of a smartphone might involve sourcing materials from Africa, assembling components in Asia, and selling the final product in Europe and North America.

The statement that the supply chain always occurs within a single organization is indeed FALSE. In contemporary economics, supply chains frequently extend beyond the boundaries of a single organization and can encompass global networks. Concepts such as intra-industry trade and the fragmentation of the value chain exemplify this. Intra-industry trade involves the international exchange of goods within the same industry, while the splitting of the value chain entails different stages of production occurring in diverse geographic locations. For example, the manufacturing of a smartphone may involve sourcing materials from Africa, assembling components in Asia, and distributing the final product in Europe and North America. The intricacies of modern supply chains often transcend organizational and national borders, reflecting the interconnected and global nature of today's economic activities.

Answer 2

The supply chain frequently extends beyond a single organization, involving multiple entities across various geographical locations, exemplified by intra-industry trade and the splitting of the value chain.

Step-by-step explanation:

The statement, 'The supply chain always occurs within a single organization,' is FALSE. Supply chain management often involves the coordination of various entities including suppliers, manufacturers, and retailers, thus extending beyond a single organization. Intra-industry trade refers to international trade of goods within the same industry, which exemplifies how businesses within the same sector may interact across borders.

Moreover, the concept of splitting up the value chain highlights that the different stages of producing a good often happen in different geographic locations, which can involve multiple organizations within the same supply chain. For example, a smartphone might be designed in one country, have its components manufactured in several other countries, and be assembled in yet another country before being shipped globally.