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Is denationalization of the supply chain better or worse for the global economy?

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linda-stuckey | Student, Undergraduate | eNotes Newbie

Posted July 15, 2013 at 11:29 PM via web

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Is denationalization of the supply chain better or worse for the global economy?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted July 16, 2013 at 2:47 AM (Answer #1)

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There is some disagreement on this issue, but economists will generally say that denationalization of the supply chain is a good thing.  This is because it increases the size of the pool from which suppliers can be drawn.

Economically speaking, it is better when we have more competition.  When there is more competition we get better quality products and we get lower prices.  These advantages can be gained by denationalizing a supply chain.  When we denationalize the supply chain, we allow more firms to compete to be in the chain.  That means that our supply chains will produce better quality goods and they will do so at a lower price. 

Because denationalizing a supply chain reduces prices and increases quality, it is a good thing.

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