Why is Transportation Economics important to understand the Global Supply Chain? (Accounting, Finance, SPSS Essay)

Why is Transportation Economics Important to Understand the Global Supply Chain?
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Why is Transportation Economics Important to Understand the Global Supply Chain?
Transportation economics refers to the study of the movements of goods and people over time and space. It is a branch in economics that ensures resources are allocated in the transport sector (Coyle et al., 2015). Transportation economics, in this case, covers land, air, and water transport. Transportation economics is very significant in understanding the world supply chain in some ways.
An effective transport system ensures that the flow of goods or services from the warehouse is smooth. This is crucial because it helps a company save resources by providing the inventory flow is not disrupted (Mangan & Lalwani, 2016). For example, in Japan, the Toyota motor company mainly uses water transport to transport its products to various outlets in other countries. By studying the water transport, the company will know its cycle for an inventory to leave the warehouse and arrive at the destination. It helps in avoiding damages that disruptions ...