a) Positive effects of international supply chains in developing economies:

a. Employment: Companies of most developed economies always tries

to find the opportunity to reduce cost using alliances or putting some
light industry in developing economies which allows companies to
use cash flow to cover another kind of needs. Some cases like Zara
or Apple prioritize global expansion with the resources of wages
which they could pay to their workers in their headquarters. For a
developing economy has benefits like working for a global company,
multinational, which in some cases gives better wages than local
companies and allow people capability to travel to some parts around
the world.

b. Opportunities to expand products to another countries: In a capitalism

economy, countries are willing to break barriers of protectionism to
make priority to expand new markets or introducing new products to
another countries. On a developing economy, the main economic
sector is primary (fruits, oil, gas) because land is very productive.
Developed countries didnt have all resources from land but they
have a lot of money to buy it from developing countries and thats an
opportunity to supply needs.

c. Developed countries investments: Like USA when they bought and

signed Panamas separation, they invested a lot of money to finish
Panama Canal, some foreigners companies invest money in ports or
signing alliances with airports to bring their merchandise for selling.
That implies more opportunities to developing countries to sign more
cooperation alliances with developed countries.

b) Negative effects:

a. Abuses: Low wages, lack of human rights or increase of inequity is

for labour force to being between wall and sword. In one hand, is the
prioritize to maintain good relationships between countries, and by
the another hand is to comply with human rights of local workers.

b. Decisions about outsourcing planning: Some companies fails in

efficiency of reporting information or allocating areas which needs
outsourcing. This could be a problem because the more developing
country is far geographically, the more issues they could have
transporting merchandising or making effective control to the
operations.
2. First, it causes the perception of having products of a developed country is a
luxury synonym. People from developing countries make efforts to buy things from
developed countries, instead of spending their money in local products. This could
make less competitive local industry and they could have difficulties to compete in
a local market against a developed industry
Next, inflation phenomena and an increasing of foreign exchange allow local
money devaluation, reducing willing to buy and increasing foreigners products
prices. An example is in real estate, in where citizens from developed economies
buy properties without using credits because for them is cheaper than in their
country. Same case for the rest of products and services.

http://keydifferences.com/difference-between-developed-countries-and-
developing-countries.html
http://noahgans.blogspot.com.co/2011/04/global-supply-chain-
management.html