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Global Supply Chain Security and Management by Darren Prokop

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Chapter 7

Trade Efficiency and Security

Are They a Trade-off?

Abstract

This chapter explores whether or not supply chain security comes at the expense of market efficiency; meaning whether or not it is a zero-sum game. If one feels that effectiveness in international trade means seamless, fast transportation and also feels that effective security is the physical inspection of all cargo by government officials at points of entry, then a trade-off is real and it is zero-sum. In other words, increased security will come at the expense of slower and lower levels of trade. However, if effective security is seen as an intelligence-driven and risk-assessing exercise then this trade-off may be blunted. The cycle of regulation is explored from regulation ...

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