Globalization strives to reduce costs by exploiting factor costs or capabilities within a system.

Question

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Globalization aims to take advantage of lower factor costs such as labor and resources in certain regions to reduce overall costs of production and improve competitiveness in the global market. It also seeks to leverage capabilities such as innovation and expertise to enhance efficiency and profitability.

Globalization Strives to Reduce Costs by Exploiting Factor Costs or Capabilities