American President Joe Biden plans to reduce bottlenecks in the world supply chain citing Brazil & India
According to USA President Joe Biden, the global supply chain has been affected & its complexity has increased by a number of folds due to the worldwide pandemic of COVID-19 hitting it very hard.
During his addressal in Baltimore, President Biden stated that as per recent data, the inflation rate in the United States had shown a high increase up to 31 per cent.
He further added that if all goods or raw materials are reaching their destination in a given time period agreed upon, then the complexity of the supply chain need not be worried upon.
He said that due to the COVID-19 pandemic, the global supply chains have expanded a lot with regards to time taken in goods reaching the consumer’s destination resulting in higher pricing of commodities.
As in layman language, the supply chain is a journey where a product undergoes from the raw material stage, manufacturing, shipping, assembling till it reaches the doorstep of the consumer.
President Biden, while explaining the complexity of the global supply chain, cited India & Brazil, saying that even a pencil to be made has to get that particular wood which is available in Brazil only, while the Graphite to be used in pencil would be procured from India.
These products come together in USA factories for their assembling, but if the supplying countries are affected by a pandemic or other major crisis, it does affect the global supply of products.
Also, products like Smartphones are assembled with parts from different areas which are far apart from each other, to name a few, like Chips from the Netherlands, Newyork touchscreens while Japan supplies the camera components.
President Biden further stated that this assembling of products from different countries does define the nature of the modern world economy.
As per Data released by the US government, the consumer prices in the country rose to 6.2 per cent in the month of October, this being a high increase since 1990.
President Biden added that the global supply chain has been a key factor in bringing down prices of a number of goods but the dependability of supply of goods from other parts of the world has increased.