1, Shanghai Fuxi Company uses its information advantage under asymmetric information to supply expired inferior meat to foreign fast food enterprises. Information asymmetry leads to moral hazard.
2. After Shanghai Fuxi Company was exposed, it affected the downstream foreign fast food enterprises, which is the risk transfer in the supply chain.
3. After the crisis, the parent company of Shanghai Fuxi Company adopted the correct crisis management mode. Sheldon Lavin, Chairman and CEO of Fuxi Global, reported the rectification measures taken by Fuxi Headquarters in response to the Fuxi incident to the US Food and Drug Administration in Shanghai, saying that the company will strictly abide by the laws of China, cooperate with the investigation and take full responsibility.