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A supply manager concludes that the best source for a critical component is a manufacturer located in an overseas country. The supplier's pricing and reputation are excellent, but it is in an area that Is politically and economically unstable. The supply manager has no experience in this country, but needs to build a relationship with the supplier. Given this situation, which of the following will be MOST helpful in the long-term?
Correct Answer: D
Given the political and economic instability of the supplier's location, employing a trading agent can be the most helpful long-term solution. A trading agent, with expertise in the local market and conditions, can navigate complexities, facilitate transactions, and manage risks associated with dealing in an unstable region. This agent can provide on-the-ground support, ensure smoother communication, and help build a strong relationship with the supplier. References: * "Global Supply Chain Management: Leveraging Processes, Measurements, and Tools for Strategic Corporate Advantage" by Matt Drake * Articles on international trade and risk management in supply chain management journals