What are some of the activities often outsourced? Among the major activities often outsourced by companies include manufacturing and some logistical activities such as transportation, warehousing and order fulfillment.
Discuss the impact of 9/11 on international logistics. The tragedy that 9/11 brought with it on the international logistics include a halt in business in key areas of the economy. The transport sector which includes both air and water were completely suspended. This is because there was no flight in and out of the United States and ocean vessels loaded with containers and other freighter ships were restricted from loading and off loading in major ports. Most of the key commodities the country could not live without were scarce since they could not import and fresh fruits and vegetables rotted. Therefore, no business took place (Coyle, 2000).
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Define what a “transactional” relationship is and discuss how this occurs in logistics. A transactional relationship refers to a deal of commercial businesses that opens up whole new worlds of invention and exploration. This relationship is often constituted between parties that hold the same business ideas, like a number of countries deciding to trade together under certain agreements or a collaboration between consumers packaged goods and supply chains. Such a relationship affects logistics from the perspective that it opens up the market for more opportunities hence more business which in turn increases logistical services (Foster, 2011).
Define and discuss Nafta. North American Free Trade Agreement refers to a mutual agreement signed by leaders of Canada, United States and Mexico in 1994. Nafta was later ratified in 1994 by the Congress. Nafta establishes a free trade zone, enabling these three countries to trade freely as established on the interpretation of the agreement. More specifically, Nafta states the objectives of these three countries as based on the principles of an unimpeded flow of goods, most-favored-nation status, and a commitment to enhance the cross-border movement of goods and services (Coyle, 2000).
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