Final answer:
A supply chain is often called a 'value chain', a comprehensive concept that covers a product's journey from design to consumption.The correct answer is option (4).
Step-by-step explanation:
A supply chain is often called a value chain, a term that describes the full range of activities that firms engage in to bring a product from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution, and support to the final consumer. The concept of the value chain is particularly relevant in discussions of globalization and the way production is spread around the world in specialized segments.
Specialization and the division of production stages allow for efficiency gains and innovation, as companies and workers become highly skilled in specific aspects of the manufacturing process. This approach to international trade—focusing on parts of products rather than the exchange of complete goods—has become more effective due to advancements in communication, information technology, and transportation. Workers and firms benefit from this specialization as it enables the opportunity to fine-tune skills, innovate, and produce sophisticated products that contribute to economic growth.
Global commodity chains have emerged as a result of globally integrated economic links that connect various entities involved in production and marketing. This framework includes various individuals and corporations across different geographies, highlighting the significance of maintaining a resilient supply chain through technological advances, transportation solutions, and labor rights protections.