Directions: Read the given passage carefully to answer the following questions. Each question will have five alternatives as its answer. Choose the correct option as your answer.

The intricate web of global supply chains, once lauded for its efficiency and cost-effectiveness, is undergoing a profound transformation. The confluence of geopolitical tensions, exemplified by trade disputes and regional conflicts, and the rapid advancement of digital technologies, such as blockchain and AI, are reshaping the very foundations of international commerce. This evolution necessitates a paradigm shift from a model optimized for lean production and just-in-time delivery to one that prioritizes resilience and adaptability. One of the most significant challenges is the increasing fragmentation of the global economy. The rise of protectionist policies and the desire for strategic autonomy have led to a trend of “friend-shoring” and “near-shoring,” where companies seek to relocate production closer to home or to politically aligned nations. This reconfiguration, while potentially mitigating geopolitical risks, can also lead to increased costs and reduced efficiency. Moreover, the reliance on a more diversified supplier base necessitates robust risk management strategies to navigate potential disruptions. Simultaneously, the digital revolution is offering unprecedented opportunities to enhance supply chain visibility and agility. Blockchain technology, for instance, enables _______________ goods and materials, reducing fraud and improving traceability. AI-powered predictive analytics can forecast demand fluctuations and identify potential bottlenecks, allowing companies to proactively mitigate disruptions. However, the successful implementation of these technologies requires significant investments in infrastructure and workforce training. Furthermore, the growing emphasis on sustainability and ethical sourcing is adding another layer of complexity to supply chain management. Consumers and regulators are increasingly demanding transparency regarding the environmental and social impact of products. This necessitates the adoption of robust auditing and certification processes, as well as collaboration with suppliers to ensure compliance with sustainability standards. The challenge lies in balancing the competing demands of efficiency, resilience, and sustainability in an increasingly volatile global environment. Ultimately, the future of global supply chains will be determined by the ability of companies and governments to adapt to these evolving dynamics. A collaborative approach, involving public-private partnerships and international cooperation, is essential to build resilient and sustainable supply chains that can withstand future shocks.