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Explaining Global Supply Chain Disruptions #shorts

Explaining Global Supply Chain Disruptions #shorts

Imagine each color block section representing different parts of a supply chain: orange for metal mining in China, purple for semiconductor production in Taiwan, blue for electronics assembly in Germany, green for products shipped to Mexico, yellow for cars assembled in Mexico, and red for cars shipped to the US. Supply chains are like a block tower - when the top falters, it affects everything below. Lockdowns in Taiwan and China, outbreaks in Germany, and slowdowns in shipping and Mexican manufacturing can weaken the chain. A significant shock can cause the entire chain to collapse. To learn more about how this concept explains supply chain disruptions, visit stlouisfed.org.

Keywords

Supply chain, disruptions, global, crisis, impact, interconnectedness

FAQ

  1. What does each color block section represent in the supply chain illustration?
  2. How are lockdowns in certain countries and manufacturing slowdowns connected to supply chain disruptions?
  3. Where can I find more information on using the block tower analogy to explain supply chain challenges?