The term global supply chain is often used to describe the complex set of interrelated activities and relationships that global companies use to source their needed material, labor, and equipment; to produce the product and service; and to deliver that product or service to the ultimate consumer. In the current time of economic nationalism with its focus on tariffs and other restrictions on movement of people and product, these global companies are facing disruptions of their current supply chains. These disruptions are discussed in the article “Tracking the Forces Threatening the World’s Hottest Economies,” by Tom Orlik, Scott Johnson, and Alex Tanzi in Bloomberg Businessweek, November 4, 2019,  (www.bloomberg.com/graphics/2019-new-economy-drivers-and-disrupters/).

Required

1. According to Orlik, Johnson, and Tanzi, the four disrupters are (select the best answer below):

a. Increase in the labor force, policies that increase productivity, inflation, openness to trade.

b. Decrease in the labor force, inflation, automation, protectionism.

c. Populist regimes, automation, climate change, protectionism.

d. Expansion of capital stock, automation, climate change, diversity.

e. Populist regimes, labor force, uncertainty, low productivity.

2. Tariffs have an important effect on the global supply chain. Tariffs are a cost to the seller that is usually passed on ultimately to

a. The merchandiser.

b. The retailer.

c. The consumer.

d. The country imposing the tariff.

e. The purchaser in the country that imposed the tariff.

3. What do you consider to be the most important positive and negative impacts of tariffs on global supply chains? Explain briefly.