What does globalization in supply chain context refer to?

Globalization in a supply chain context primarily refers to the spread of supply chains worldwide. This involves the interconnectedness and interdependence of markets and suppliers across different countries, allowing businesses to access resources, manufacturing capabilities, and markets on a global scale. Such globalization enables companies to optimize production locations, reduce costs, and cater to a broader customer base.

In contrast, local sourcing of materials focuses on procurement within a specific region, which is more about localized supply chains rather than global networks. The reduction of global trade tariffs may facilitate globalization but is just one contributing factor and does not define the concept itself. The isolation of national markets would be contrary to the idea of globalization, as it suggests a retreat from internationally integrated supply chains. Thus, the essence of globalization reflects the expansion and integration of supply chains across borders, making option B the most accurate representation of this concept.