Another
purpose of using supply chains is to increase the benefits of trade
facilitation, such as control of trade costs and non tariff measures.
If
we remember the information provided by the article (Ferrantino, J. M. (2012) the traded goods prices along the supply
chain from the factory or farm price to the retail price (retail markups) the typical cost increase from the factory in an
exporting country like (China) to the retailer in the importing country (The United
States) amounts to 170%, consisting of 21% transportation costs, 44% border
related trade barriers, and 55% retail and wholesale margins (1.21*1.44*1.55 =
2.7; 2.7 - 1 = 1.7, for a markup of 170 percent).
So
we could say that the way the developed countries have been applying or using
the supply chain analysis would be a good example for the developing countries
to take advantage of the NTMs and the benefits of the trade facilitation.
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