Question

Which of the following best illustrates the globalization of production?

Answer 1

Answer:

You bought one DVD and found out from the small prints that the American movie it contains was shot in Canada, the DVD was manufactured in Portugal, and you bought it online at Amazon.com

Explanation:

he globalization of production is referred to as the sourcing of materials from locations around the globe for a production. Complete goods and services or parts are acquired from countries where they are available at lower opportunity costs are used to manufactured new products. The globalization of production is taking advantage of differences in the quality and cost of inputs in different countries.  

Advancement in information technology and transportation has fueled the globalization of production.  Reduction in international trade restrictions has made it possible for companies and countries to source for the factors of production, including capital, labor, and land from nations where they are least expensive.