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Cayman Islands or Bermuda due to regulatory and tax restrictions in the UnitedStates. 44D. Supply Chain InterruptionsAs referenced in earlier portions of this paper, today’s global economy results incomplex links between suppliers, manufacturers, distributors, and retailers.Acatastrophic event suffered by a supplier on the other side of the world can result in ashutdown of a business’s operations just as if the catastrophic event occurred at thebusiness’s facility. 45Because of this, supply chain risks require extra attention by abusiness. For example, earthquake damage to a Japanese factory supplying pistonrings to eight of twelve Japanese car manufacturers disrupted production for threeweeks. 46 An international electronics company maintained a single source of supply fora critical component and after a fire at the supplier’s plant, the company lost $400million in sales and subsequently shut down an entire business line. 47 Similarly, a fire ata plant in South Korea contributed to a shortage of notebook computer batteries andslowed market growth for ultra low cost notebook computers and ultra-mobilecomputers. 48 Many domestic companies were also negatively affected because of thedestruction to shippers and suppliers of goods caused by the devastation to the GulfCoast area after Hurricane Katrina.44 Id.45 Linda Conrad, Protecting Profitability if Your Supply Chain Breaks, RISK INSIGHT SUPPLY CHAIN ISSUE,2009, at 8, 9 (discussing the effect of a global economy on supply chains).46 Id. at 12.47 Id.48 Id.March 5, 2015 15 @ 3-5-2015 ALFA International6427256.3/SP/00009/0099/011215

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