Question

A furniture company in the United States works with a plant in India to make wooden desks. The U.S. company designs the desks, and the manufacturer in India makes, assembles, and paints them. These desks are then shipped to the U.S. customers by a shipping company from Taiwan to the sea port in Los Angeles. Each step along the way is monitored by software that each of the companies use to communicate with each other. The way this furniture company conducts business is an example of the term known as ________.

Answer 1

Globalization

Step-by-step explanation:

The globalization in this example involves the diversification of the production plants of a certain enterprise to a third party country where the manofacturing is largely cheaper than it would be in their countries or if they had the factory to make them, globalization in economics relates to the destruction of the political and tax barriers that forbid to de-centralize processes of production to other countries were manofacturing processes are cheaper.

Answer 2

Answer: Globalization

Explanation: Globalization can be defined as the process under which the the company starts operating its business internationally, that is, in companies other than which it is incorporated.

In the given case, the company in the business is incorporated in USA but is using Indian labor for its manufacturing process and a Taiwan company for its shipping purposes.

Hence, we can conclude that the given case is an example of Globalization.