GSCM 211 MIDTERM QUESTIONS AND
VERIFIED ANSWERS
\.globalization - ANSWERS✔-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 - ANSWERS✔-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 - ANSWERS✔-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 - ANSWERS✔-producing goods and services at a lower
opportunity cost (ex. cotton sheets from egypt)
\.absolute advantage - ANSWERS✔-producing goods and services more efficiently
than competitors
, \.adam smith - ANSWERS✔-wrote the wealth of nations, which talked about
absolute advantage
\.mercantilism - ANSWERS✔-countries controlling trade so they export more than
they import
\.thomas friedman - ANSWERS✔-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 - ANSWERS✔-isambard kingdom brunel with transportation,
michael faraday with electric telegraph, john d. rockefeller with kerosine oil,
frederick taylor with specialization
\.bretton woods system - ANSWERS✔-foundation of the majority of world trade,
financial and commodity interdependence, us dollar as the main trading currency,
tariffs reduced or eliminated
\.european union - ANSWERS✔-inspired by belgium, the netherlands, and
luxembourg with no barriers to trade among member nations
\.african continental free trade agreement - ANSWERS✔-allows for free access to
commodities, goods, and services across the continent to boost intra-african trade
\.mercosur - ANSWERS✔-sub-regional bloc to promote free trade and the fluid
movement of goods, people, and currency in south america
VERIFIED ANSWERS
\.globalization - ANSWERS✔-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 - ANSWERS✔-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 - ANSWERS✔-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 - ANSWERS✔-producing goods and services at a lower
opportunity cost (ex. cotton sheets from egypt)
\.absolute advantage - ANSWERS✔-producing goods and services more efficiently
than competitors
, \.adam smith - ANSWERS✔-wrote the wealth of nations, which talked about
absolute advantage
\.mercantilism - ANSWERS✔-countries controlling trade so they export more than
they import
\.thomas friedman - ANSWERS✔-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 - ANSWERS✔-isambard kingdom brunel with transportation,
michael faraday with electric telegraph, john d. rockefeller with kerosine oil,
frederick taylor with specialization
\.bretton woods system - ANSWERS✔-foundation of the majority of world trade,
financial and commodity interdependence, us dollar as the main trading currency,
tariffs reduced or eliminated
\.european union - ANSWERS✔-inspired by belgium, the netherlands, and
luxembourg with no barriers to trade among member nations
\.african continental free trade agreement - ANSWERS✔-allows for free access to
commodities, goods, and services across the continent to boost intra-african trade
\.mercosur - ANSWERS✔-sub-regional bloc to promote free trade and the fluid
movement of goods, people, and currency in south america
