Question

Chinese mining companies supply 97% of the rare-earth materials used in manufacturing television screens. When China announced a decrease in exports of rare-earth materials, Hitachi, a Japanese company, was concerned about a shortage of materials. This is an example of ______________

Answer 1

Answer: Supplier dependence

Explanation:

Supplier dependence is the extent to which a firm (buyer) relies on the product of another firm (supplier) because of the importance of the supplier's products to it's own manufacturing process. The degree to which a buyer is dependent on a supplier's product is largely affected by the difficulty of accessing such products from another seller. In this case, 97% of this rare-earth materials are supplied by Chinese firms, the ban will greatly affect Hitachi manufacturing process.

Answer 2

Answer:

The correct answer is letter "A": supplier dependence.

Explanation:

Supplier dependence is the degree to which manufacturers rely on suppliers for their production due to the scarcity of the raw materials or the importance of suppliers. Supplier dependence can also be caused when manufacturers in a supply chain rely on a single supplier to provide them with raw materials instead of counting with multiple suppliers to avoid shortages.