What does product specialization involve for companies aiming to globalize?

Product specialization in the context of globalization involves focusing on a specific product or a narrow range of products rather than spreading resources too thin by offering a wide variety across multiple markets. This specialization allows companies to enhance efficiency, improve product quality, and capitalize on the expertise and capabilities of specific production locations.

Opting to transfer the full production process to a single low-cost location effectively aligns with product specialization because it allows companies to streamline operations and reduce costs while concentrating on optimizing the production of a particular product. This creates a competitive advantage as companies can leverage economies of scale and harness the specialized skills available in that location.

Other options suggest different approaches that don't directly correlate with the essence of product specialization in a global context. For example, introducing multiple products across various markets reflects a diversification strategy rather than specialization. Using diverse production locations for different products implies a broader production strategy that spreads resources, which is contrary to the focus and efficiency that product specialization aims for. Outsourcing marketing processes to local firms can enhance market reach but does not pertain directly to the specialization of products or production processes.

Thus, transferring the full production process to a single low-cost location is the most aligned with the concept of product specialization, enabling focused and efficient production necessary for successful globalization.