Term
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Definition
Shift toward a more integrated and interdependent world economy.
Glossary: Trend away from distinct national economic units and toward one huge global market. |
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Term
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Definition
Merging of historically distinct and separate national markets into one huge global marketplace.
Glossary: Moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and towards a system in which national markets are merging into one global market. |
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Term
| Globalization of production |
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Definition
Sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production.
Glossary: Trend by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of factors of production. |
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Term
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Definition
| Inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how. |
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Term
| Why is globalization of production important? |
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Definition
| Companies can lower their overall cost structure or improve the quality or functionality of their product; allowing them to compete more effectively. |
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