GSCM 211 MIDTERM QUESTIONS AND
100% VERIFIED ANSWERS
\.Globalization - ANSWERS✔-- an extension of the make or buy decisionbeyond
national borders
- the interconnectedness and interdependence of peoples and countries
\.what are some benefits of globalization? - ANSWERS✔-• Exchange of
information, ideas, goods, etc.faster across the globe
• Increases interactions
\.Pros of Globalization - ANSWERS✔-•Increased awareness of other cultures and
countries
•Globalization encourages innovation
•Income of low cost labor in developing countries has increased
•Developing countries have increased access to first-world products
\.Cons of Globalization - ANSWERS✔-•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 - ANSWERS✔-- The ability of a country to produce a
good at a lower OPPORTUNITY cost than another country can.
- a foundation of the majority of world trade since 1944 country should specialize
in producing and exporting only those goods and services which it can produce
more efficiently (at lower opportunity cost) than other goods and services (which
it should import).
- all countries benefit by each country using its comparative advantage
\.absolute advantage - ANSWERS✔-a party can produce a good or service more
efficiently than its competitors
\.mercantilism - ANSWERS✔-countries centrally controlling trade so they export
more than they import, and thus prosper more than other countries
\.Thomas Friedman - ANSWERS✔-said "the world has moved from periods of
being round (where trade barriers are high) to periods of being flat (where
barriers to trade are lowered).
- "the world is flat"
\.First Industrial Revolution - ANSWERS✔-- nations focused on their strengths and
traded for products they were not as skilled at producing. Trade barriers lowered
\."The wealth of nations" - ANSWERS✔-Adam Smith
\.Bretton Woods System - ANSWERS✔-- the foundation of the majority of world
trade
, - financial and commodity interdependence
- US dollar as the main trading currency
- Tariffs reduced or eliminated
- the west prospered
\.Trading Blocs - ANSWERS✔-- European Union
- African Continental Free Trade Agreement
- Mercosur
- NAFTA
- NECP
- All of these have the intention of making trade easier
\.Protectionism - ANSWERS✔-- the practice of shielding one or more industries
within a country's economy from foreign competition through the use of tariffs or
quotas
- taxes and tariffs to make imports look bad on the store shelf
- encourage growth within a country but at the same time sometimes
protectionism fails (ex: Harley Davidson)
\.creative destruction - ANSWERS✔-where industries change dramatically or are
replaced by new industries, all in response to changing consumer preferences &
innovation
\.Benefits of global trade - ANSWERS✔-•Raise the standard of living for both
developed and developing nations
100% VERIFIED ANSWERS
\.Globalization - ANSWERS✔-- an extension of the make or buy decisionbeyond
national borders
- the interconnectedness and interdependence of peoples and countries
\.what are some benefits of globalization? - ANSWERS✔-• Exchange of
information, ideas, goods, etc.faster across the globe
• Increases interactions
\.Pros of Globalization - ANSWERS✔-•Increased awareness of other cultures and
countries
•Globalization encourages innovation
•Income of low cost labor in developing countries has increased
•Developing countries have increased access to first-world products
\.Cons of Globalization - ANSWERS✔-•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 - ANSWERS✔-- The ability of a country to produce a
good at a lower OPPORTUNITY cost than another country can.
- a foundation of the majority of world trade since 1944 country should specialize
in producing and exporting only those goods and services which it can produce
more efficiently (at lower opportunity cost) than other goods and services (which
it should import).
- all countries benefit by each country using its comparative advantage
\.absolute advantage - ANSWERS✔-a party can produce a good or service more
efficiently than its competitors
\.mercantilism - ANSWERS✔-countries centrally controlling trade so they export
more than they import, and thus prosper more than other countries
\.Thomas Friedman - ANSWERS✔-said "the world has moved from periods of
being round (where trade barriers are high) to periods of being flat (where
barriers to trade are lowered).
- "the world is flat"
\.First Industrial Revolution - ANSWERS✔-- nations focused on their strengths and
traded for products they were not as skilled at producing. Trade barriers lowered
\."The wealth of nations" - ANSWERS✔-Adam Smith
\.Bretton Woods System - ANSWERS✔-- the foundation of the majority of world
trade
, - financial and commodity interdependence
- US dollar as the main trading currency
- Tariffs reduced or eliminated
- the west prospered
\.Trading Blocs - ANSWERS✔-- European Union
- African Continental Free Trade Agreement
- Mercosur
- NAFTA
- NECP
- All of these have the intention of making trade easier
\.Protectionism - ANSWERS✔-- the practice of shielding one or more industries
within a country's economy from foreign competition through the use of tariffs or
quotas
- taxes and tariffs to make imports look bad on the store shelf
- encourage growth within a country but at the same time sometimes
protectionism fails (ex: Harley Davidson)
\.creative destruction - ANSWERS✔-where industries change dramatically or are
replaced by new industries, all in response to changing consumer preferences &
innovation
\.Benefits of global trade - ANSWERS✔-•Raise the standard of living for both
developed and developing nations
