The globalization of production has allowed firms to
A) increase their market share.
B) lower their cost structure.
C) respond to individual market segments.
D) avoid international competition.
E) meet all of these goals.

Question

Quizplus · Accepted Answer

The globalization of production has allowed firms to lower their cost structure by sourcing inputs and labor from countries where they are cheaper. While it may also lead to increased market share and the ability to respond to individual market segments, these are not the direct results of globalization of production. Avoiding international competition is not a goal of globalization of production as it usually involves competition on a global scale.

The Globalization of Production Has Allowed Firms to