Asked by Mariah Donnally on Jul 05, 2024

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Russet Inc., an American stainless steel manufacturer, sources iron ore from Australia for the manufacture of steel. It saves on raw material costs as iron ore is cheaper in Australia. This scenario best illustrates _____.

A) the globalization of production
B) the economies of scope
C) vertical integration
D) market segmentation

Globalization Of Production

The dispersal of production processes across different countries and regions, seeking to optimize costs, quality, and efficiency.

Raw Material Costs

The expenses associated with acquiring raw materials needed for production.

Iron Ore

A natural resource that is mined and processed to extract iron, used primarily in the production of steel.

  • Gain an understanding of globalization and its influence on market dynamics and manufacturing.
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Danielle BeckerJul 05, 2024
Final Answer :
A
Explanation :
Russet Inc. sourcing iron ore from Australia for steel manufacturing demonstrates the globalization of production, as it involves obtaining raw materials from a global source to minimize costs and improve efficiency.