In the context of economics, which term describes the process of converting products from goods to services?

• A. Globalization
• B. Specialization
• C. Diversification
• D. Servitization

Answer: (D)

Verified step by step guidance

1. Understand the key terms provided in the problem: Globalization, Specialization, Diversification, and Servitization.
2. Recall that Globalization refers to the increasing interconnectedness of economies worldwide, not specifically the conversion of goods to services.
3. Recognize that Specialization involves focusing on a narrow range of products or tasks to increase efficiency, which is different from converting goods into services.
4. Note that Diversification means expanding the variety of products or services offered, rather than converting goods into services.
5. Identify that Servitization is the process where companies transform their business model from selling physical goods to providing services related to those goods, which matches the description in the problem.