Global trade clearly has a significant impact on the economies of various countries. Explain how global interdependence impacts countries overall (a macro basis), as well as how it impacts individual organizations doing business within various countries (a micro basis).

Global supply chain flows reflect the world economy and the trade patterns between and among the countries of the world. There is an underlying economic rationale for global trade that can bring benefits to the various trading partners. That said, the "economic pie" is not evenly divided. The economic strength of the various countries is based upon their inherent "factors of production" and some related economic, social, and political factors. Overall, global economic progress is dependent upon a united effort from the more developed economies to aid in the development of the lesser developed countries. Global interdependence can be good news or bad news on a macro basis. On the positive side, it can result in lower prices, wider availability of goods and services, land and resource development, and new employment opportunities for countries and regions of the world, both developed and developing regions. On the negative side, the interdependence can lead to global economic downturns or recessions, as was the case from 2008 to 2009, requiring government intervention to mitigate the problems. The recovery process was slow in some countries, causing some economic turbulence. The micro level examines how individual firms respond to the increased complexity and competitiveness of a global economy. These changes have resulted in shorter product life cycles, new forms of competition, and new business models. Outsourcing, off-shoring, and insourcing have become part of the lexicon of twenty-first century businesses. Information technology has allowed supply chains to be redesigned for more efficiency and effectiveness as well as better execution. Supply chain management has become an important, and for some organizations, even critical ingredient for their competitive strategy and success in this global environment. These companies have transformed themselves by changing their supply chains to take advantage of global opportunities.