Question

Tariffs and the border wall have been in the news over the past several months. Please discuss one of these issues in your discussion forum and the impact that it has had or could have on supply chain and specifically purchasing.

Answer 1

answer-

Tarrif is the issue or barrier for the supply chain and specifically purchasing the the raw materials from outside country for the business purposes. Tarrifs put tax on supply of goods from one country to another.The integration of supply chains both domestically and globally has meant that any trade measures implemented on a single country or sector will likely ripple outward to other regions and sectors. If government put high tarrif on supplies of goods and services then Tariffs make foreign goods more expensive which means the products produced in domestic country by domestic manufacturer would also increase the prices of their final products which could effect the consumers because high price means consumers would likely to purchase less that product.

so, Tarrifs has significant effect on supply chain and purchasing because it increases the prices of the raw materials in supply chain and increases the chance of less purchase.