Question

1. The textbook describes how Political, Economic, and Cultural factors can influence international logistics. In terms of complexity, and the challenge to deal with these factors in international trade, how would you rank them? (1, 2, and 3; 1 being the most complex and difficult) This is not a "right or wrong" answer, but you need to explain your reasoning for ranking them in the order that you choose.

Answer 1

Answer:

Check the following analysis

Explanation:

The order of complexity would be as below –

1. Cultural Factors
2. Political
3. Economic

Clarification – In international logistics the most complex challenge is that of cultural factors as it is difficult to follow standard practices throughout because standard practices influence business practices. Things that are looked down upon in one culture are preferred in another culture. This makes things really complex.

The next factor is political. There is some amount of unpredictability involved in this factor. A rapid change in the political scenario can change the business dynamics and affect the whole ecosystem.