Globalization of production can help companies lower their overall cost structure or improve the quality or functionality of their product offering.

Question

Quizplus · Accepted Answer

The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. By doing this, companies hope to lower their overall cost structure or improve the quality or functionality of their product offering, thereby allowing them to compete more effectively.

Globalization of Production Can Help Companies Lower Their Overall Cost