The new model of a tight, fast, low-inven supply chain operating across political and cultural boundaries has reduced the overall level of supply chain risk. True False

## Step 1: Statement AnalysisWe are asked to analyze the statement that a new model of a tight, quick, low-inventory supply chain operating across political and cultural boundaries decreases the overall supply chain risk.## Step 2: Understanding Supply Chain RiskSupply chain risk involves any unforeseen event that disrupts the normal flow of goods within a company's supply chain. Such an event could come from various sources including natural disasters, logistics failure or changing markets. ## Step 3: The Role of the New ModelIn the new model, a tight, fast, and low-inventory supply chain can indeed minimize some types of risk – closer coordination can potentially lead to less variability, shorter lead times may reduce exposure to external shocks, and keeping lower inventory levels can help to more closely match supply and demand. However, it also introduces new risks. Considering political and cultural boundaries, supply chain operations can be impacted by local regulatory changes, increased logistical complexity, cultural misunderstandings, and a range of other factors that increase risk rather than decreasing it. Low inventories mean a lack of a buffer if disruptions occur, making the chain vulnerable. Cultural and political differences can lead to misunderstanding and clashes.### If the amount of newly Introduced risk was higher than or equal to the reducing risk, the overall supply risk would not decrease. In this context, operation across cultural and political boundary lines seems to introduce new risk to operations.