Globalization of production refers to convergence in buyer preferences in markets around the world.

Question

Quizplus · Accepted Answer

Globalization of production refers to the tendency of firms to source goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital). Convergence in buyer preferences is a different aspect of globalization, referred to as globalization of markets.

Globalization of Production Refers to Convergence in Buyer Preferences in Markets