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hi this is Anita from the Global Trade
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Gal today I want to talk about the
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impact of global supply chain
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disruptions and even though I'm talking
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specifically about the home decor
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business which is my business which is
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home decor and home furniture because at
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Muro we create develop and manufacture
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home decor and home furniture this
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really applies to all types of
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businesses and industries i believe that
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this is an extremely timely topic
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especially now as the United States is
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putting tariffs on you know just about
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everybody but you know there's many ways
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you could go I guess you could call it
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sort of like the barrier to trade like
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you know that this can hurt the global
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supply chain and some of them aren't the
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barrier of trade they're just things
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that sort of happen and I've listed out
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here sort of like 15 of them we're going
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to talk about here one of them is the
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trade wars we're now looking at trade
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wars going on between the United States
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and Canada the United States and Europe
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the United States and China the United
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States and basically everybody the thing
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about a trade war is there's no winners
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you know people think well we're going
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to win this is going to bring back the
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jobs there I don't see any winners
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that's ever really happened from a trade
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war only thing most people end up
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getting is higher prices and because
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they get higher prices you got less
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sales and it hurts the economy you know
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example of the US you know tra you know
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China trade war on Chinese manufacturers
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they resulted in higher retail prices in
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the US market and you know there's many
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people that are estimating now with this
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current trade war could you know it
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could be a couple hundred dollars for US
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families every single month because of
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these tariffs you know that brings me to
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the number two which is the tariffs
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which is this costly barrier here you
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know tariffs are essentially taxes that
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are imposed on imported goods i was
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talking to a friend of mine recently
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about this and she's like "Well doesn't
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the country pay?" I said "No tariff is
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paid on the US side." It's for example
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if you go to the store and you buy a
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pack of gum before you can get the gum
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out of the store you need to pay the tax
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on that pack of gum that's essentially
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what a tariff is a tariff is an
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additional tax on the good that's
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imported so the person who pays is the
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person who is importing the goods or in
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the case of the gum you pay the tax as
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you are buying the pack of gum you know
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tariffs on things such as raw materials
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such as wood or steel or aluminum is
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just going to make it more expensive for
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people who are using those materials to
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manufacture within the United States
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it's going to increase production cost
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and then what does it do too besides um
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increasing production cost it's also
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going to increase the cost that they
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have to sell to export those things so
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that's why there are no winners at all
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when it comes to things as trade wars
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and tariffs you know yes you can try to
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locally source but locally sourcing the
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cost may even be more expensive than if
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you bought it from overseas and that
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becomes the problem there you know if
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you don't have free and open trade it
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just begins to hurt the economy and hurt
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the the consumers another thing is
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anti-dumping you know anti-dumping is
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basically preventative measure on
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countries that from selling their
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products or they say they sell the
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products at below market values you know
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many many years ago I went through the
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anti-dumping and bedroom furniture for
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China we were producing some bedroom
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furniture there we ended up having to
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you know totally you know give up the
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business because the factories we were
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working with didn't have the protection
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from the anti-dumping and the truth of
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the matter is the factories of
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protection were really the big factories
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that were probably the ones that were
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more anti-dumping than us that were
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selling high-end bedroom furniture the
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whole thing about the anti-dumping in
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the bedroom furniture was several US
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company manufacturers went over and said
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"Well we can no longer compete you know
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with China so that we basically need to
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have anti-dumping." They got the
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anti-dumping regulations but I can tell
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you no jobs really came back to the
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United States because of that instead
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those companies switched the jobs to
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Vietnam Indonesia Philippines and other
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places they did not bring those jobs
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back to America that is again why I I
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don't believe in anti-dumping i I
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realize sometimes maybe you have to
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there's really unfair trade practices
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the factories I've seen which I
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personally saw with my own eyes you know
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when I was working in China and we were
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dealing with this was it hurt the small
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factories it hurt the medium-sized
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factories it hurt the factories that
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definitely were not anti-dumping the
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factories that were doing higherend
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product why because suddenly now every
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piece of furniture they sold into the
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United States that can no longer be
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competitive so they had to switch from
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doing bedroom furniture to doing other
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types of furniture because of the
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anti-dumping another thing which can
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really affect trade of course is port
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congestion delays and shortages you know
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port congestion is often due to labor
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disputes um inefficient logistics um you
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increase shipping demand all of these
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things can make a difference of it uh
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things like the Panama Canal congestion
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can delay shipments you know sending
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things from from Asia to North America
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so these are all types of port
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congestions if there's a strike which
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there's been many port strikes that can
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of course cause a lot of problems too
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sometimes when there's been some port
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strikes there's been the ships just
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sitting out there on the ocean just kind
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of waiting to be able to land and what
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happens with this is when things get
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delayed like this it really becomes a
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problem for everything because suddenly
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you know the shipping is made for you
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ship a container you unload the
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container and then the container gets
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reshipped it's not made to be sitting
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out there in the ocean full of goods
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because then it begins to mess up
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everything and suddenly container costs
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become extremely high because nobody can
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get containers it becomes a huge problem
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so that you goes my next one which is
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about shipping container shortages they
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can increase freight cost we saw this a
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lot during the COVID pandemic where
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where suddenly like containers that
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would have cost $4,000 were costing you
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know you know $18,000 $20,000 huge
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increase and for a lot of the importers
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they just don't have that built into
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their their prices to be able to handle
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that other things which can you know
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affect the whole you know global supply
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chain is raw material shortages can
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cause production delays if you have
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things like wood metal or you know
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textiles other things like that can
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cause a problem uh global um you know
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global lumber shortages can lead to
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delays or price hikes in wooden
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furniture or if you're looking for a
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specific type of furniture labor
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shortages can be huge too especially if
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you're doing what we're doing where
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you're dealing with the home furnishing
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and and home decor i was saying to
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somebody recently like years ago when I
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was first working in China a lot of the
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products that we did were hand painted
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very intricately hand painted we had you
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know we work in factories had teams and
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teams and teams of these sort of
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qualified hand painters that could copy
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anything and that's all they did was
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hand paint and then suddenly the look
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changed and everybody wanted this
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transitional look and didn't want the
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hand painted anymore all those hand
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painters have disappeared today in China
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it's very hard to find somebody who can
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hand paint why because they've all
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disappeared they have new jobs or
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they're doing new things and they're not
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working in the factories anymore so you
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know things as labor shortages or
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changes in looks or changes in designs
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can cause a labor shortage at some time
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uh political instability is another huge
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one that if if there's political unrest
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or there's or or what's happening now in
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the United States these government
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policies can disrupt manufacturing and
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can you know disrupt the import export
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process and the global supply chain
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environmental disasters can too natural
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disasters such as hurricanes earthquakes
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and floods um even things like the
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wildfires in in California can affect it
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disrupt logistics and delay shipments
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currency is also another big one that
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you need to always look out for because
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if suddenly the currency changes or or
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in some way if you're buying in dollars
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and suddenly the dollar dips or changes
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you know you can end up paying much more
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for the goods or for the order than you
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would have before changes in consumer
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demand we talked about this a bit before
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when we talked about you know the hand
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painting that you know the consumer
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demand the looks changed so suddenly
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there became this whole you know
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inventory imbalance became harder to
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find people to produce certain things
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environmental regulations this in China
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has been huge where I must say that
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China has been you know cracking down a
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lot on environmental issues i just read
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you know today in the newspaper in
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Vietnam where a factory was being forced
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to move because of environmental issues
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you know in outside Vietnam so all these
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environmental issues pollution and
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things like that can cause a huge uh
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problem and even the government may shut
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down the factory force them to move or
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or or something else like that and tell
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them we don't we don't want you here
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anymore intellectual property disputes
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if you have something you bring
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something in and there's a property
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dispute with it this can cause a problem
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or cause a delay transportation
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bottlenecks and delivery delays this
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again is you such as you shortages of
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drivers you know even if you ship the
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container the container goes to you know
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the port or the ware or the you know the
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storage facility in the United States if
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there's no drivers to take the container
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out that can also be a problem too or if
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suddenly fuel prices go up and the
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driver begins to say well look I can't
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make money on this because fuel prices
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have got up so high that I can't move
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this container and last could be cyber
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security you know threats or attacks you
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know as the global supply chain becomes
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more online if there's a cyber security
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threat if there's a data operational you
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know threat this could become a risk for
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data and operation risk so you know
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that's why you know cyber security is
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such uch an important thing i have a
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nephew who's in cyber security and
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recently Microsoft and LinkedIn they did
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this type of survey and they were
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looking at you know what companies were
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looking for and the number one thing
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that most companies were looking for and
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didn't know if they could fulfill was
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cyber security so that just shows you
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how important cyber security is today
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that people are looking at cyber
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security and that cyber security is a
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very essential and important part of all
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types of operating systems you know
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there's many ways you can navigate these
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challenges that you can mitigate them in
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in many different ways and I've written
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a blog on this where you can go back and
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you can look at this if you're
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interested in it called the impact of
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global supply chain disruptions on home
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decor availability but I as I said we're
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not just talking about home decor even
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though that is kind of like what we know
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about this is really we're talking about
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the overall impact of the global supply
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disruptions and what they could mean for
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you i think with anything when it comes
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to risk these are all things that we
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need to look at all things that anybody
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who's in the global supply chain needs
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to look at and say "What can we do to
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mitigate these risks?" I believe that
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that's important and essential we hope
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that you will join with us that you've
11:47
enjoyed and subscribe we'd love to have
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you be part of our community thank you