Service constraints abroad and market access impact

An article in the New York Times (April 10,2012) describes restrictions on flight paths for UPS in China, and the consequent service disruption due to bad weather. The lack of route flexibility thus impacts service guarantees offered by UPS. Given that unreliable delivery hurts product and service competitiveness, should this service constraint be treated as an export tax on US goods ? Similarly, if US insurance companies were restricted to one territory per year in China, and thus not able to follow their clients across the country, does that hurt US goods ? In short, should the US government focus on constraints on service companies as a tax on manufactured exports ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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