May 12, 2021 You are here: Home / Business / What’s the ‘bullwhip effect’ and how can we avoid crises like the global chip shortage? What’s the ‘bullwhip effect’ and how can we avoid crises like the global chip shortage? (Credit: Unsplash) This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum. Author: John Letzing, Digital Editor, Strategic Intelligence, World Economic Forum An ongoing shortage of semiconductors has had profound impacts. The current scarcity has been described as a result of the ‘bullwhip effect.’ Experts say there are ways to mitigate the phenomenon, which can snarl global trade.