GSCM 211: MIDTERM QUESTIONS AND ANSWERS
(SOLVED) 100% CORRECT.
globalization Answer - an extension of the make or buy decision beyond
national borders, exchange of info/ideas/goods faster across the globe,
increases interactions
pros of globalization Answer - increased awareness of other cultures and
countries, encourages innovation, income of low cost labor in developing
countries has increased, developing countries have increased access to first-
world products
cons of globalization Answer - environment of winners and losers, unequal
opportunities across the world, the world's wealth is increasingly concentrated
(rich getting richer), globalization strategy is poorly managed (damage of the
environment)
comparative advantage Answer - producing goods and services at a lower
opportunity cost (ex. cotton sheets from egypt)
absolute advantage Answer - producing goods and services more efficiently
than competitors
adam smith Answer - wrote the wealth of nations, which talked about
absolute advantage
, mercantilism Answer - countries controlling trade so they export more than
they import
thomas friedman Answer - said "the world has moved from period of being
round (where trade barriers are high) to periods of being flat (where trade
barriers are low)"
titans of industry Answer - isambard kingdom brunel with transportation,
michael faraday with electric telegraph, john d. rockefeller with kerosine oil,
frederick taylor with specialization
bretton woods system Answer - foundation of the majority of world trade,
financial and commodity interdependence, us dollar as the main trading
currency, tariffs reduced or eliminated
european union Answer - inspired by belgium, the netherlands, and
luxembourg with no barriers to trade among member nations
african continental free trade agreement Answer - allows for free access to
commodities, goods, and services across the continent to boost intra-african
trade
mercosur Answer - sub-regional bloc to promote free trade and the fluid
movement of goods, people, and currency in south america
nafta (replaced by usmca) Answer - gradually eliminated most tariffs and other
trade barriers in north america
(SOLVED) 100% CORRECT.
globalization Answer - an extension of the make or buy decision beyond
national borders, exchange of info/ideas/goods faster across the globe,
increases interactions
pros of globalization Answer - increased awareness of other cultures and
countries, encourages innovation, income of low cost labor in developing
countries has increased, developing countries have increased access to first-
world products
cons of globalization Answer - environment of winners and losers, unequal
opportunities across the world, the world's wealth is increasingly concentrated
(rich getting richer), globalization strategy is poorly managed (damage of the
environment)
comparative advantage Answer - producing goods and services at a lower
opportunity cost (ex. cotton sheets from egypt)
absolute advantage Answer - producing goods and services more efficiently
than competitors
adam smith Answer - wrote the wealth of nations, which talked about
absolute advantage
, mercantilism Answer - countries controlling trade so they export more than
they import
thomas friedman Answer - said "the world has moved from period of being
round (where trade barriers are high) to periods of being flat (where trade
barriers are low)"
titans of industry Answer - isambard kingdom brunel with transportation,
michael faraday with electric telegraph, john d. rockefeller with kerosine oil,
frederick taylor with specialization
bretton woods system Answer - foundation of the majority of world trade,
financial and commodity interdependence, us dollar as the main trading
currency, tariffs reduced or eliminated
european union Answer - inspired by belgium, the netherlands, and
luxembourg with no barriers to trade among member nations
african continental free trade agreement Answer - allows for free access to
commodities, goods, and services across the continent to boost intra-african
trade
mercosur Answer - sub-regional bloc to promote free trade and the fluid
movement of goods, people, and currency in south america
nafta (replaced by usmca) Answer - gradually eliminated most tariffs and other
trade barriers in north america
