Practice Tests
IELTS Reading (AC) Task 1 #171

A. Global supply chains are the complex, interconnected networks of organisations, people, activities, information, and resources involved in moving a product or service from its supplier to the customer. In our modern globalised economy, these chains often span multiple countries, with raw materials sourced in one region, components manufactured in another, assembly in a third, and the final product sold worldwide. This system has been designed to maximise efficiency and minimise costs, allowing consumers to access a wide variety of affordable goods.

B. The logic of global supply chains is based on the principle of comparative advantage, where different countries specialise in what they can produce most efficiently. This has led to the development of highly specialised manufacturing hubs around the world. The system relies on sophisticated logistics, including container shipping and air freight, and just-in-time inventory management, where parts are delivered exactly when they are needed in the production process to minimise storage costs.

C. However, the very efficiency of these lean, globalised supply chains also makes them fragile and vulnerable to disruption. Recent events, such as the COVID-19 pandemic, geopolitical conflicts, and extreme weather events linked to climate change, have exposed these vulnerabilities. A lockdown in one key manufacturing region or a blockage in a major shipping lane, like the Suez Canal, can cause a ripple effect across the entire global economy, leading to product shortages, shipping delays, and price increases.

D. In response to these challenges, there is a growing conversation about the need to build more resilient supply chains. Strategies being considered include diversifying sourcing to reduce reliance on a single country or region, increasing inventory levels to create a buffer against disruptions, and "reshoring" or "near-shoring" production by moving it back to the home country or to a nearby one. While this may increase costs in the short term, the goal is to create a more robust and stable global trading system for the future.