Global Trade is Complex and Growing Rapidly.
Economies of the world are becoming increasingly global in nature. This is being driven by several factors, including:
Ultimately, the extra complexity and risk of global trade translates directly into a worsened cash flow position and increased procurement and logistics costs, because businesses must carry a greater amount of working capital. First, businesses carry more inventory to accommodate longer order cycles and uncertainty in the global supply chain, and second, businesses carry more accounts receivable because they are less efficient at managing their global financial supply chain.