China Is at the Center of the Supply Chain: Natixis’s Garcia Herrero

The video discusses the fiscal stimulus measures in Asia, focusing on Singapore and Hong Kong, and their cautious approach despite having resources. It highlights the impact of the coronavirus on supply chains, particularly in China, affecting companies like Apple and Toyota. The interconnectedness of global trade means disruptions in China have widespread effects.

What is the main reason for the cautious fiscal approach of Asian governments like Singapore and Hong Kong?

• They are following the lead of Western countries.

• They want to preserve resources for future uncertainties.

• They are waiting for more economic data.

• They have limited financial reserves.

How is Singapore planning to adjust its fiscal policy in response to economic changes?

• By reducing corporate taxes.

• By increasing the Goods and Services Tax (GST).

• By cutting public spending.

• By introducing new subsidies for businesses.

Why is Apple unable to meet its revenue guidance for the March quarter?

• Because of supply chain disruptions caused by the coronavirus.

• Due to a decline in consumer demand.

• Due to a strategic shift in their product line.

• Because of increased competition from other tech companies.

What is a significant challenge for companies that have diversified their manufacturing outside China?

• Dependence on Chinese components for certain products.

• Higher labor costs in other countries.

• Lack of skilled workforce in new locations.

• Increased regulatory hurdles in other countries.

What is the broader implication of China's role in global supply chains?

• It encourages more countries to become self-sufficient.

• It results in higher production costs worldwide.

• It causes a dependency that can disrupt global trade if issues arise.

• It leads to increased trade barriers.