5 The following is NOT a risk factor in a global supply chai

5. The following is NOT a risk factor in a global supply chain that operates across many counties:

A. natural disaster that may affect a new offshore supplier

B. Political upheaval in a country within which the firm has supplier

c. Reactions of the U.S. government to a terrorist attack.

d. Demand that varies from systematic component of the forecast

Solution

Option C

Note that when the demand varies from the systematic component, this may be the result of demand shocks and so the decisions in the global supply chain are influenced by the current economic and political conditions of the region where the firm is operating. There are natural disasters, Political upheaval and demand shocks but a political response of one single country is not considered as a risk factor.