#1
Which of the following is a characteristic of globalization?
Integration and interdependence of economies
ExplanationGlobalization involves the integration and interdependence of economies.
#2
What is offshoring in the context of microeconomics?
Outsourcing business processes to another country
ExplanationOffshoring in microeconomics refers to outsourcing business processes to another country.
#3
In terms of globalization, what does FDI stand for?
Foreign Direct Investment
ExplanationFDI stands for Foreign Direct Investment in the context of globalization.
#4
Which of the following is a potential benefit of offshoring for companies?
Access to a larger talent pool
ExplanationOffshoring can provide companies with access to a larger talent pool.
#5
Which of the following is an example of a country known for its offshoring activities in the IT sector?
India
ExplanationIndia is known for its offshoring activities in the IT sector.
#6
What is the primary goal of globalization?
To increase interdependence among nations
ExplanationThe primary goal of globalization is to increase interdependence among nations.
#7
Which factor is NOT typically a motivation for offshoring?
Enhanced quality control
ExplanationEnhanced quality control is not typically a motivation for offshoring.
#8
What is a potential negative consequence of globalization?
Income inequality within countries
ExplanationGlobalization can lead to increased income inequality within countries.
#9
Which of the following is NOT a factor contributing to the rise of globalization?
Isolationist economic strategies
ExplanationIsolationist economic strategies do not contribute to the rise of globalization.
#10
What is the main difference between offshoring and outsourcing?
Offshoring involves moving production processes abroad, while outsourcing involves hiring external vendors.
ExplanationOffshoring involves relocating production processes abroad, while outsourcing involves hiring external vendors.
#11
Which of the following is an example of a service commonly offshored?
Legal services
ExplanationLegal services are commonly offshored.
#12
What is a key characteristic of offshoring that distinguishes it from other forms of international business?
Physical relocation of production facilities
ExplanationOffshoring involves physically relocating production facilities.
#13
Which theoretical perspective argues that globalization benefits developed countries at the expense of developing ones?
Dependency theory
ExplanationDependency theory suggests that globalization benefits developed countries at the expense of developing ones.