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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 ?
With test results indicating as much as a 25 percent performance improvement after defragmentation, the VHD Save tests show quite clearly the effect of writing a very large file to a fragmented hard drive.
In the server application tests we are looking at the impact of fragmented storage on server-based applications.
As our tests show, allowing the data to become seriously fragmented can have a major negative impact on the Exchange user experience with a 40 percent reduction in performance in our highly fragmented test environment.
0--preventing the MFT from becoming fragmented in the first place.
When the defragmentation software is first installed on a machine, it is quickly defragmented at boot time if the MFT is fragmented.
Tropical forest remnants: ecology, management, and conservation of fragmented communities.
Insects in fragmented forests: a functional approach.
Predicting the impacts of edge effects in fragmented habitats.