Question

When Jerry started his small appliance manufacturing company in the 1950s, every component part was made in the USA and the product was assembled in the USA. Today, he sources the components from China. The change at this company is an example of the _____.

Answer 1

Answer:

Globalization of production

Explanation:

Globalization of production talks about economic globalisation, it is a means of integrating national economy into international economy via capital flow, trade, foreign direct investment etc.

One of the advantage of Globalization of production is that it helps to raise incentives for production in regions with low cost.

Answer 2

Answer: Globalization of production

Explanation: Globalization of production is the acquisition of products and services from a specific source from regions around the world to have an advantage in expenditure and quality of production like land, labor, and capital.

In this case, Jerry made a change in the country that was making the component for him from the USA to China which resulted in the globalization of production. This means that despite a product may have the mark of being manufactured in a specific nation, its components may be from distinct locales.