The use of different suppliers and component manufacturers in the production of a good. Fragmentation results in different companies producing component parts rather than the finished good, with the components being assembled as a final product elsewhere. Suppliers do not have to be located in the same geographical region.

Fragmentation is often associated with globalization, as companies seek to use suppliers who are the most cost-effective, even if those companies are located abroad. For example, an airplane may have its wings manufactured in Germany, its electronics in Japan, its glass in China and its seats in Mexico. All the components are shipped to the United States, put together and sold as the final product.

Investment dictionary. . 2012.

Look at other dictionaries:

  • fragmentation — [ fragmɑ̃tasjɔ̃ ] n. f. • 1840; de fragmenter ♦ Action de fragmenter, fait de se fragmenter. ⇒ division, éclatement, segmentation. Fragmentation d une propriété en parcelles dispersées. Fragmentation du chromosome, interrompant la succession des… …   Encyclopédie Universelle

  • Fragmentation — may refer to:In biology* Fragmentation (reproduction), a form of asexual reproduction * Fragmentation (cell biology) * Habitat fragmentationOther* Fragmentation (computer) a phenomenon of computer storage * Fragmentation (economics), a process of …   Wikipedia

  • fragmentation — UK US /ˌfræɡmenˈteɪʃən/ noun [U] ► a situation in which an industry or business activity has many companies but no one company is more important than the others: »Industry fragmentation could end the company s dominance of the market. → See also… …   Financial and business terms

  • fragmentation — n. the act or process of separating something into small pieces or fine particles. Syn: atomization, atomisation. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • fragmentation — (n.) 1881, from FRAGMENT (Cf. fragment) + ATION (Cf. ation). Fragmentation grenade attested from 1918 …   Etymology dictionary

  • fragmentation — fragmentation. См. фрагментация. (Источник: «Англо русский толковый словарь генетических терминов». Арефьев В.А., Лисовенко Л.А., Москва: Изд во ВНИРО, 1995 г.) …   Молекулярная биология и генетика. Толковый словарь.

  • Fragmentation — Fragmentation. См. Фрагментация. (Источник: «Металлы и сплавы. Справочник.» Под редакцией Ю.П. Солнцева; НПО Профессионал , НПО Мир и семья ; Санкт Петербург, 2003 г.) …   Словарь металлургических терминов

  • fragmentation — index decentralization Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • fragmentation — ► NOUN ▪ the process of breaking or the state of being broken into fragments …   English terms dictionary

  • Fragmentation — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sur les autres projets Wikimedia : « Fragmentation », sur le Wiktionnaire (dictionnaire universel) Le mot fragmentation désigne un… …   Wikipédia en Français

  • Fragmentation — branduolio skaidymas statusas T sritis fizika atitikmenys: angl. fragmentation of nucleus vok. Fragmentation, f; Kernzertrümmerung, f rus. расщепление ядра, n; фрагментация ядра, f pranc. fragmentation du noyau, f …   Fizikos terminų žodynas

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