Final answer:
A global supply chain is a firm's interconnected system for sourcing, producing, and distributing goods on an international scale to capitalize on competitive advantages. It reflects the specialized production model where different stages can be located across various countries.
Step-by-step explanation:
The correct answer to the student's question is a global supply chain. This term refers to a firm's integrated network, which includes sourcing, production, and distribution. These components are organized on a worldwide scale and strategically located in various countries to maximize competitive advantage. The global supply chain is instrumental for firms that divide the production of goods into stages, often referred to as splitting up the value chain. For instance, a product like the iPhone is designed and engineered in the United States, has parts supplied from Korea, is assembled in China, and is marketed in the United States. Specialization and technological advances in communication, information sharing, and transportation have facilitated the splitting of the value chain, allowing firms to concentrate on different stages of the production process. This trend has led to a form of international trade that focuses on shipping specialized goods and components rather than complete products, thereby enhancing intra-industry trade and enabling economic gains through focused innovation and production efficiency in specific areas of the value chain.