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1. A means of production in which different parts of the supply chain are located in different countries. Fragmentation occurs to reduce costs of production. For example, the least expensive materials may be in India and the cheapest factory workers in China, while the target retail customer is in the United States or Canada. Fragmentation can occur most easily when there is free trade, or at least low tariffs between all the countries on the supply chain. See also: Globalization.

2. A situation in a decentralized market. This often renders investors unaware of the best price available for their trades, resulting in inefficiency in the market. Fragmentation has become less of a problem with the advent of electronic exchanges and other, similar products.


The lack of full interconnection of the various securities markets. Fragmentation can result in customer orders being sent to markets that do not offer the best available price. Critics claim the inefficiencies of fragmentation can be cured with a central order book that includes orders from all markets.
References in periodicals archive ?
1) The experiment results indicate that the fluidized-bed temperature is an important factor of oil shale primary fragmentation, and that higher fluidized-bed temperature results in severer fragmentation.
The laminated structure and high ash content may contribute to the primary fragmentation characteristics of Huadian oil shale.
3) The thermal stress fragmentation and devolatilization-induced fragmentation have little effect on small oil shale particles.
4) The Back Propagation network model for oil shale primary fragmentation can predict the particle size distribution of shale chars obtained at different fluidized-bed temperatures, which provides some references for the computation and design of fluidized bed boilers.