Question

Company ABC, based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of _____.

Answer 1

Answer:

the globalization of production.

Explanation:

Since company ABC, based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of the globalization of production.

Globalization of production can be defined as the process of sourcing goods and services from other countries (locations) around the world in order to take advantage of labor cost savings and quality of other factors of production such as land and capital.

Additionally, globalization can be defined as a strategic process which involves the integration of various markets across the world to form a large global marketplace.

Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.