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Model answer - Essay Example

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In certain cases even human welfare is jeopardized in order to gain high profits. Other factors that are closely related to international trade…
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Model answer

Download file to see previous pages... Welfare of people is often ignored while trading internationally as the major focus is on profits. A minority section gains maximum profit through the procedure who is not even citizens of the exploited nation. This is observed mainly in third world countries where people need to work under unfair conditions, with low wages or in unhealthy work environments, demonstrating the negative aspects of international trade (Stephen, 2011). The other negative issues are exhaustion and destruction of natural resources. It can also be stated that international trade increases dependencies amongst nations and enables supplying nation to exercise more power and impose trade restrictions on other nation, simply to achieve financial gains.
Logistics can be defined as an effective management of the procedure through which resources are acquired, moved to different locations or stored as and when required. Logistics management encompasses identification of potential distributors and suppliers, and even evaluation of their effectiveness and accessibility so as to establish healthy relationships (Maloni and Benton, 2000).
A logistic system comprises of various components such as customer service, transportation, inventory management, materials handling, storage, information processing, packaging, production planning, production planning, demand forecasting, facility location, purchasing and other related activities. These other activities for an organization can comprise of service support, effective handling of goods returned, maintenance functions and recycling operations (Fawcett and Magnan, 2002). A particular firm might not require all of the components to accomplish specific tasks. For instance, a service firm such as airlines encompasses elements such as maintenance, customer service, information processing, demand forecasting and purchasing functions so as to reach to the ...Download file to see next pagesRead More
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