Final answer:
The functioning of a supply chain involves the flow of goods and services, the flow of funds, and the sharing of information. Advances in technology and transportation, along with proper labor policies, enhance these flows and the efficiency of international trade. The global economy's specialization allows for a value chain that may be split across multiple countries.
Step-by-step explanation:
The functioning of a supply chain involves various flows that ensure efficient operation and distribution of goods and services. These flows include the movement of products from producers to consumers, the transfer of funds for payment of these goods, and the sharing of information to facilitate both of these operations.
For example, advancements in technology, transportation methods, and vehicles enhance the flow of goods and services by reducing delivery times and costs. Policies that protect labor rights and ensure stability in supply chains during national emergencies are crucial to maintain these flows. Integration of better labor policies and investment in the workforce can lead to a more resilient and effective supply chain.
International trade often involves splitting up the value chain. This means that different stages of production for a product may happen in various locations around the world. Improvements in technology and transportation have made it easier to divide the production process across countries, leading to more specialized trade and potentially more economic gains.