Question

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:
A) Globalization of production.
B) Globalization of markets.
C) Dislocation of developing nation's economy
D) Restriction on foreign direct investment

Answer 1

Answer:

A) Globalization of production.

Explanation:

Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper. Thus, a company can make gains by differentiating in labor cost and production location, becoming consequently more competitive.Moreover, productive globalization is a way of opening up new consumer markets, that is, companies started to sell to other countries, sometimes to the whole world.