Global inter-connectedness means that information is transmitted almost instantaneously around the world. This has allowed for global decomposition of supply
chains, with different parts at different locations, and the inter-connectedness of such
diverse locations has turned
any significant local disruptions
into global ones. Any natural catastrophe, political upheaval or economic crisis – in any part
of the world, if it affects a major node in the global supply chain – will have global impact. Taking
9/11 as a somewhat arbitrary but significant starting point, the incidents of catastrophe and crisis – with both human and economic impact – in the world have reached a level of frequency which has made them 'normal'.
The 2004 Aceh and the recent Japanese earthquakes took many lives where the disaster happened, but the ensuing tsunami and radiation leaks (in the case of Japan) had consequences beyond
the location itself. As Japan is a major node in the global supply chain, it also impacted the world's semi-conductor and
auto manufacturing industries. |