The globalization of production mainly occurs due to the:
A) growing cultural homogeneity across markets.
B) increasing differences in the tastes and preferences of consumers in different nations.
C) national differences in the cost and quality of factors such as labor, energy, land, and capital.
D) rise in communism the world over.
E) increasing worldwide demand for unskilled workers.

Question

Quizplus · Accepted Answer

The globalization of production occurs due to national differences in the cost and quality of factors such as labor, energy, land, and capital. This means that firms look to produce different aspects of their product or service in different countries, depending on where they can find the best combination of factors for their needs. Cultural homogeneity (A) and differences in tastes and preferences (B) are factors that may influence international marketing decisions, but they are not necessarily what drives the globalization of production. The rise of communism (D) and demand for unskilled workers (E) may also be factors in some contexts, but they are not central to the process of globalization of production.

The Globalization of Production Mainly Occurs Due to The