Final answer:
Companies go global to leverage favorable costs, access international markets, and secure reliable supply sources. Globalization is further driven by improvements in technology and transportation, and by international trade agreements facilitating economic connections and market expansion.
Step-by-step explanation:
The primary reasons why companies choose to go global include to take advantage of favorable costs, to gain access to international markets, and to build reliable sources of supply. Essentially, the answer is d) All of the above. Companies go global for various strategic reasons: taking advantage of lower production or labor costs in different countries can boost profit margins; gaining access to international markets opens up new opportunities for sales and customer acquisition; and establishing reliable sources of supply ensures that companies have the materials they need to produce their goods or services, reducing the risk of supply chain disruptions.
International trade can allow even small economies to leverage economies of scale, thanks to the larger market available beyond their borders, enhancing their production efficiency. It also brings the benefits of competition and a wider variety of goods and services, which can improve quality and drive innovation. Furthermore, international agreements serve to counterbalance domestic protectionist interests, and together with reductions in trade barriers, have catalyzed the interconnectivity of the global market.
Several competing corporations might form an association because there is often strength in numbers, they may face common issues that could impact the entire industry, and they can influence government policies for their mutual benefit—so the answer would be d) all the above. Lastly, globalization has been driven by improvements in transportation, advancements in computing and telecommunications, and international agreements encouraging trade, all contributing to the seamless movement of products and information across national boundaries.