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Question 531 - CSCP discussion

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Which of the following effects is most likely to occur for a supply chain within a trading bloc?

A.
Increased loss of intellectual property
Answers
A.
Increased loss of intellectual property
B.
Increased growth due to consolidation
Answers
B.
Increased growth due to consolidation
C.
Loss of business due to more imports
Answers
C.
Loss of business due to more imports
D.
Shorter lead times due to decreased border crossing scrutiny
Answers
D.
Shorter lead times due to decreased border crossing scrutiny
Suggested answer: D

Explanation:

A trading bloc is a type of intergovernmental agreement where regional barriers to trade, such as tariffs and non-tariff barriers, are reduced or eliminated among the participating states.

Reduced Border Controls: Within a trading bloc, member countries typically experience reduced customs checks and streamlined procedures at borders, leading to faster processing times.

Harmonized Regulations: Trading blocs often harmonize regulations and standards, which reduces delays caused by differing national standards and compliance checks.

Enhanced Cooperation: Increased cooperation among member countries can lead to better infrastructure and more efficient logistical coordination, further reducing lead times.

This reduction in border crossing scrutiny directly leads to shorter lead times, making option D the most likely effect on a supply chain within a trading bloc.

European Union. 'The Benefits of Trade for Europe.' Europa.eu.

World Trade Organization. 'Regional Trade Agreements and the WTO.' WTO.org.

asked 16/09/2024
ERIC MERRILL
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