Explain cross-border supply chain resilience and name one approach to strengthening it.

• A. The ability to eliminate all disruptions instantly
• B. The focus on local markets with no impact from global shocks
• C. The ability to anticipate, absorb, and recover from supply chain shocks; approaches include supplier diversification and inventory buffering
• D. Relying on a single supplier for efficiency

Answer: (C)

Cross-border supply chain resilience is about a system’s ability to anticipate risks, absorb shocks, and recover quickly so that products keep moving despite disruptions that happen across countries. It focuses on creating flexibility and redundancy in the network so a disruption in one area doesn’t derail the whole flow.

One effective approach is diversifying suppliers across different regions while also buffering inventory for critical parts. Diversifying suppliers reduces dependency on a single source or country, so if one supplier is hit by a disruption—whether due to a port closure, a strike, or a regulatory change—other suppliers can step in and keep production going. Inventory buffering provides a safety margin, helping to absorb short-term shocks and buy time to adjust routes or source alternatives without interrupting delivery to customers. Together, these practices improve visibility and planning, enabling faster recovery and adaptation in a global context where disruptions can ripple through multiple borders.

The other ideas aren’t as well suited to resilience in a cross-border setting. Trying to eliminate all disruptions instantly is unrealistic, and focusing only on local markets ignores global risks. Relying on a single supplier for efficiency creates a fragile chain that’s vulnerable to any disruption in that source.