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Thinking through Second- and Third-Order Effects



Today's article of note discusses one stream of first- and second-order effects of the recent and tragic earthquake in Taiwan -- https://www.zerohedge.com/markets/tsmc-shutters-some-chipmaking-plants-quake-rocks-island-nation.


Event -- earthquake in Taiwan


First-order effect -- temporary closing of some Taiwan Semiconductor Manufacturing Company (TSMC) manufacturing plants

(Note: By some estimates, TSMC is responsible for ~90% of global high-end chip production)


Second-order effect -- delay in high-end chip manufacturing, shipping, and delivery


Third-order effect -- ????? (What might be the impacts for your firm?)


If you're not thinking about how international events affect (negatively AND positively) your organization, So Little Pains Consulting can help.


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