Question

One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in Germany, Ireland, and Canada that are more economical than home-country sources. The choice to use these sources is an example of the _______

Answer 1

Answer:

The answer is: globalization of production

Explanation:

Globalization of production to the business practice of increasing the flow of production factors from "cheaper" countries in order to lower their production costs. For example, cars are assembled using thousands of different auto parts, a lot of them are produced in the US, but a large portion are imported parts form countries like China, Mexico, EU, etc. Many times the auto parts are manufactured by the same corporation but on different locations, e.g. BMW produces engines in Germany and SUVs in the US, 3M produces auto parts in the US, Brazil, China, Mexico and several other countries and sells them all in the US.