Which of the following examples best illustrates the globalization of production?
A) Silva Hotels & Resorts, a Brazilian hotel chain, provides hospitality services to tourists from all around the world.
B) Taupe, an Australian non-profit organization, is funded by Australian multinational companies.
C) Hazel Inc., an Irish textile company, engages in corporate social responsibility.
D) Tanner Inc., an American publishing company, outsources writing services to India.

Question

Quizplus · Accepted Answer

Globalization of production refers to companies sourcing goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (e.g., labor, energy, land, and capital). Tanner Inc. outsourcing writing services to India is an example of this, as the company is leveraging the cost advantages and skills available in another country.

Which of the Following Examples Best Illustrates the Globalization of Production