GSCM 211: MIDTERM EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Globalization - ANS 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 - ANS 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 - ANS 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 - ANS producing goods and services at a lower opportunity cost (ex.
cotton sheets from egypt)
absolute advantage - ANS producing goods and services more efficiently than competitors
adam smith - ANS wrote the wealth of nations, which talked about absolute advantage
@2026 ALLRIGHTS RESERVED 1
, mercantilism - ANS countries controlling trade so they export more than they import
thomas friedman - ANS 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 - ANS isambard kingdom brunel with transportation, michael faraday with
electric telegraph, john d. rockefeller with kerosine oil, frederick taylor with specialization
bretton woods system - ANS foundation of the majority of world trade, financial and
commodity interdependence, us dollar as the main trading currency, tariffs reduced or
eliminated
european union - ANS inspired by belgium, the netherlands, and luxembourg with no barriers
to trade among member nations
african continental free trade agreement - ANS allows for free access to commodities, goods,
and services across the continent to boost intra-african trade
mercosur - ANS sub-regional bloc to promote free trade and the fluid movement of goods,
people, and currency in south america
nafta (replaced by usmca) - ANS gradually eliminated most tariffs and other trade barriers in
north america
recp (regional comprehensive economic partnership) - ANS free trade agreement that will
create the world's largest trading bloc, significant achievement for china in the asia-pacific
region
@2026 ALLRIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Globalization - ANS 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 - ANS 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 - ANS 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 - ANS producing goods and services at a lower opportunity cost (ex.
cotton sheets from egypt)
absolute advantage - ANS producing goods and services more efficiently than competitors
adam smith - ANS wrote the wealth of nations, which talked about absolute advantage
@2026 ALLRIGHTS RESERVED 1
, mercantilism - ANS countries controlling trade so they export more than they import
thomas friedman - ANS 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 - ANS isambard kingdom brunel with transportation, michael faraday with
electric telegraph, john d. rockefeller with kerosine oil, frederick taylor with specialization
bretton woods system - ANS foundation of the majority of world trade, financial and
commodity interdependence, us dollar as the main trading currency, tariffs reduced or
eliminated
european union - ANS inspired by belgium, the netherlands, and luxembourg with no barriers
to trade among member nations
african continental free trade agreement - ANS allows for free access to commodities, goods,
and services across the continent to boost intra-african trade
mercosur - ANS sub-regional bloc to promote free trade and the fluid movement of goods,
people, and currency in south america
nafta (replaced by usmca) - ANS gradually eliminated most tariffs and other trade barriers in
north america
recp (regional comprehensive economic partnership) - ANS free trade agreement that will
create the world's largest trading bloc, significant achievement for china in the asia-pacific
region
@2026 ALLRIGHTS RESERVED 2
