Final answer:
When a shoe manufacturer opens a company-owned retail store, it's an example of vertical integration, where the company extends its operations within the supply chain to increase control and potential efficiencies.
Step-by-step explanation:
When a shoe manufacturer opens a company-owned retail store, it is an example of vertical integration. Vertical integration occurs when a company expands its operations into an area of the supply chain that was previously handled by another business. It allows the company to control more aspects of its product production and distribution, which can lead to increased efficiency and cost savings.
In the past, the United States manufactured clothes, but many clothing corporations have shut down their U.S. factories and relocated to China. This is an example of globalization and outsourcing, where companies move their production to other countries in search of lower labor costs and other efficiencies.
Furthermore, this trend closely relates to the changes in patterns of consumption, where department stores and large retail chains like Wal-Mart dominated the market, often at the expense of smaller, locally owned businesses. These entities represent modern consumerism and the shift from a local to a global marketplace, influencing both local economies and global production practices.