Final answer:
A sequence of interconnected organizations involved in developing, producing, distributing, and selling a product to the final consumer is called a supply chain.
Step-by-step explanation:
A sequence of interconnected organizations that help develop, produce, distribute, and sell a product to the final consumer is known as a supply chain. This concept is integral to understanding how modern economies and global markets operate, as it involves the production stages of a good and the logistical arrangements to transport the product to the consumer. With globalization, companies have been able to outsource and offshore various parts of their supply chain operations to access cheaper labor and resources, and to maximize efficiency and specialization. For example, the iPhone is designed in the United States, the parts are supplied from Korea, assembly occurs in China, and advertising and marketing take place back in the United States, effectively splitting up the value chain across different countries.
Additionally, trade agreements like NAFTA have facilitated these processes, enabling companies to establish production facilities in countries like Mexico while still selling their products in the United States, to benefit from economic integration.