INTB 3080 Exam 1
How has Apple capitalized on the globalization of production? What
advantages does manufacturing in China offer the company? correct
answersChinese subcontractors are able to respond very quickly to requests
from Apple to scale production up and down
Why do you think Apple continues to keep activities like product design,
software engineering, and marketing in the United States? correct
answersThey pride themselves on being an American company so they
make their important decisions in the US
Globalization correct answersTrend away from distinct national economic
units and toward one huge global market
Globalization of Markets correct answersMoving away from an economic
system in which national markets are distinct entities and toward one huge
global market (typically industrial goods and materials)
Globalization of Production correct answersTrend by individual firms to
disperse parts of their productive processes to different locations around the
globe
How does Globalization affect jobs and incomes? correct answersThe
wage gap is closing as we experience growth (higher income) and more
jobs are available as companies outsource
How does Globalization affect Labor Policies and the Environment? correct
answersTougher environmental regulations and stricter labor standards go
hand in hand with economic progress (free market and free trade would
make it easier for the world to cope with pollution and population growth).
Pollution rates rise in poor countries and fall in developed nations. A well-
treated labor force is productive which motivates people not to labor exploit.
How does Globalization affect National Sovereignty? correct
answersSupranational organizations' (WTO, EU, UN) power rests largely on
their ability to persuade member states to follow a certain action and if
they fail to serve collective interest the organization will fail; therefore, real
power still resides with individual nation-states
How does Globalization influence the World's Poor? correct answersAlthough
there is economic stagnation in poor countries, it does not have anything to
do with free trade or globalization. They suffer because of economic and
political systems. Nations are being held back by debt and are trapped in a
cycle of poverty. They need debt relief to combat poverty.
, 2-speed economy correct answersEconomies whose industries experience
unevenly distributed rates of growth.
In the article about Amazon in India, what were the characteristics of the
market that differed from the US market and how did Amazon adapt? correct
answersThe payment system is drastically different only 60% on Indians
have bank accounts (half the customers pay cash only). They have a
warehouse with 4,000 bike riders to make speedy deliveries. Amazon has
partnered with shop owners as pick up points.
Why is the manufacturing of Vizio flat panel TVs migrating to different
locations around the world? correct answersThey have taken advantage of
the globally dispersed supply chains to make and sell low cost and high
quality TVs
Who benefits from the globalization of the flat panel industry? Who are
the losers? correct answersConsumers get cheap TVs and manufacturers
reach high sales. The losers are the firms that make traditional cathode
ray TVs in high cost locations (Japanese Sanyo)
Why were Global Institutions needed? correct answersMarkets globalized
and an increasing proportion of business activity transcends from national
borders. Institutions help manage, regulate, and police the global
marketplace and promote the establishment of multinational treaties to
govern global business systems.
G-20 correct answers20 developed countries to make sure we have
proper financial policies (Institution for finance ministers and central
banks)
IMF correct answersInternational Monetary Fund is an international
institution set up to maintain order in the international monetary system
(last resort when nations are in economic turmoil and currencies are losing
value)
World Bank correct answersLess controversial than IMF that is an
international organization set up to promote economic development by
offering low interest and loans to poor nations
WTO correct answersWorld Trade Organization succeeded the general
agreement on tariffs and trade and now acts as police to the World Trading
System
United Nations correct answersInternational organization of 191
countries keeping international peace, cooperation, and promoting
human rights
GATT correct answersGeneral Agreement on Tariffs and Trade is an
international treaty that committed signatories to lowering barriers to the
free flow of goods across national borders and lead to the WTO
How has Apple capitalized on the globalization of production? What
advantages does manufacturing in China offer the company? correct
answersChinese subcontractors are able to respond very quickly to requests
from Apple to scale production up and down
Why do you think Apple continues to keep activities like product design,
software engineering, and marketing in the United States? correct
answersThey pride themselves on being an American company so they
make their important decisions in the US
Globalization correct answersTrend away from distinct national economic
units and toward one huge global market
Globalization of Markets correct answersMoving away from an economic
system in which national markets are distinct entities and toward one huge
global market (typically industrial goods and materials)
Globalization of Production correct answersTrend by individual firms to
disperse parts of their productive processes to different locations around the
globe
How does Globalization affect jobs and incomes? correct answersThe
wage gap is closing as we experience growth (higher income) and more
jobs are available as companies outsource
How does Globalization affect Labor Policies and the Environment? correct
answersTougher environmental regulations and stricter labor standards go
hand in hand with economic progress (free market and free trade would
make it easier for the world to cope with pollution and population growth).
Pollution rates rise in poor countries and fall in developed nations. A well-
treated labor force is productive which motivates people not to labor exploit.
How does Globalization affect National Sovereignty? correct
answersSupranational organizations' (WTO, EU, UN) power rests largely on
their ability to persuade member states to follow a certain action and if
they fail to serve collective interest the organization will fail; therefore, real
power still resides with individual nation-states
How does Globalization influence the World's Poor? correct answersAlthough
there is economic stagnation in poor countries, it does not have anything to
do with free trade or globalization. They suffer because of economic and
political systems. Nations are being held back by debt and are trapped in a
cycle of poverty. They need debt relief to combat poverty.
, 2-speed economy correct answersEconomies whose industries experience
unevenly distributed rates of growth.
In the article about Amazon in India, what were the characteristics of the
market that differed from the US market and how did Amazon adapt? correct
answersThe payment system is drastically different only 60% on Indians
have bank accounts (half the customers pay cash only). They have a
warehouse with 4,000 bike riders to make speedy deliveries. Amazon has
partnered with shop owners as pick up points.
Why is the manufacturing of Vizio flat panel TVs migrating to different
locations around the world? correct answersThey have taken advantage of
the globally dispersed supply chains to make and sell low cost and high
quality TVs
Who benefits from the globalization of the flat panel industry? Who are
the losers? correct answersConsumers get cheap TVs and manufacturers
reach high sales. The losers are the firms that make traditional cathode
ray TVs in high cost locations (Japanese Sanyo)
Why were Global Institutions needed? correct answersMarkets globalized
and an increasing proportion of business activity transcends from national
borders. Institutions help manage, regulate, and police the global
marketplace and promote the establishment of multinational treaties to
govern global business systems.
G-20 correct answers20 developed countries to make sure we have
proper financial policies (Institution for finance ministers and central
banks)
IMF correct answersInternational Monetary Fund is an international
institution set up to maintain order in the international monetary system
(last resort when nations are in economic turmoil and currencies are losing
value)
World Bank correct answersLess controversial than IMF that is an
international organization set up to promote economic development by
offering low interest and loans to poor nations
WTO correct answersWorld Trade Organization succeeded the general
agreement on tariffs and trade and now acts as police to the World Trading
System
United Nations correct answersInternational organization of 191
countries keeping international peace, cooperation, and promoting
human rights
GATT correct answersGeneral Agreement on Tariffs and Trade is an
international treaty that committed signatories to lowering barriers to the
free flow of goods across national borders and lead to the WTO
