Economic factors such as unemployment rates affect labor availability, wages, and consumer purchasing power, directly impacting business operations and supply chains.

Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues

An amicable approach is critical when alternative suppliers are limited or when ongoing collaboration is required during the termination period. Maintaining positive relations ensures smooth operations and protects reputations in the marketplace.

The relationship spectrum runs from adversarial/transactional to collaborative partnerships such as strategic alliances and co-destiny. Also included are mid-spectrum arrangements like single sourcing and arm's length.
Options 2 and 3 list valid relationship types, making 2 and 3 correct.

Comprehensive and Detailed Explanation:
The buying organisation's decision to terminate the partnership with supplier FGH is influenced by:
* Changes in the composition of the supply market: The entry of new suppliers into the market provides the buying organisation with more options, reducing dependency on FGH and enabling the pursuit of better partnerships.
* Poor communication by the supplier: FGH's lack of proactive communication regarding delivery delays has led to frustration, indicating a breakdown in the partnership's effectiveness.
These factors align with the principles of supplier relationship management, where effective communication and adaptability to market changes are crucial.
Reference:
"Poor communication by the supplier" and "Changes in the composition of the supply market" are valid reasons for terminating a supplier relationship.- Docsity: CIPS Supplier Relationships L4M6 Questions and Answers