BUSI 301 QUESTIONS AND ANSWERS LATEST UPDATE ALREADY
GRADED A+
Absolute advantage
the ability to produce a good using fewer inputs than another producer
Example: India has an absolute advantage in operating call centers compared to the Philippines because
of its low cost of labor and abundant labor force.
Comparative advantage
The ability of a country to produce a good at a lower cost than another country can.
If you're comparing two different options, each of which has a trade-off (some benefits as well as some
disadvantages), the one with the best overall package is the one with the comparative advantage.
Opportunity cost
Cost of the next best alternative use of money, time, or resources when one choice is made rather than
another.
The potential benefit that someone loses out on when selecting a particular option over another
Offshoring
Moving operations from the country where a company is headquartered to a country where pay rates
are lower but the necessary skills are available.
Offshoring Driven By:
Improved modularization and quality control
Efficient containerized trade
Free trade agreements
Rise of large-scale overseas manufacturers
Low cost labor
Outsourcing
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.
Decide on "core competencies"
Invest heavily in these
Modularize all other activities
Find a specialist to perform them
Ford Motor company used to do EVERYTHING itself. This is too expensive so Ford decided on "core
competency" (making cars).
, We can even see this in the university. If you go to universities in many countries, the school will have
cafeterias, bookstores, and even hotels - all employing university staff.
Broadening
The extension of economic and geographic linkages to encompass virtually all major societies and states.
deepening
An increase in the frequency and intensity of state and societal interactions.
multinational national corporation (MNC)
An organization that manufactures and markets products in many different countries and has
multinational stock ownership and multinational management
globally integrated enterprise (GIE)
An organizational structure in which work process and executive functions are distributed around the
world through global centers rather than developed in a home country and replicated in satellite
countries or regions
Example: International Business Machines (IBM) Corporation is an American multinational information
technology company headquartered in Armonk, New York, with operations in over 170 countries.
global segmentation
identifies a group of consumers with common needs and wants that spans the entire globe
Race to the bottom
the idea that free trade gives states the incentive to lower regulations and standards in order to beat
out the competition in producing goods cheaply.
Modularization
the process of breaking down a program into modules.
Modularization also works in consumer products such as furniture. The famous IKEA bookcase "Billy" is
another example for modularization. It is assembled from very standardized basic parts or modules, but
can be put together or expanded in many different ways customized to different tastes.
Define specific task
Define requirements and standards for that task
Maintain close contact or Quality of Service (QoS)
agreement with "client"
States regulation Role
GRADED A+
Absolute advantage
the ability to produce a good using fewer inputs than another producer
Example: India has an absolute advantage in operating call centers compared to the Philippines because
of its low cost of labor and abundant labor force.
Comparative advantage
The ability of a country to produce a good at a lower cost than another country can.
If you're comparing two different options, each of which has a trade-off (some benefits as well as some
disadvantages), the one with the best overall package is the one with the comparative advantage.
Opportunity cost
Cost of the next best alternative use of money, time, or resources when one choice is made rather than
another.
The potential benefit that someone loses out on when selecting a particular option over another
Offshoring
Moving operations from the country where a company is headquartered to a country where pay rates
are lower but the necessary skills are available.
Offshoring Driven By:
Improved modularization and quality control
Efficient containerized trade
Free trade agreements
Rise of large-scale overseas manufacturers
Low cost labor
Outsourcing
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.
Decide on "core competencies"
Invest heavily in these
Modularize all other activities
Find a specialist to perform them
Ford Motor company used to do EVERYTHING itself. This is too expensive so Ford decided on "core
competency" (making cars).
, We can even see this in the university. If you go to universities in many countries, the school will have
cafeterias, bookstores, and even hotels - all employing university staff.
Broadening
The extension of economic and geographic linkages to encompass virtually all major societies and states.
deepening
An increase in the frequency and intensity of state and societal interactions.
multinational national corporation (MNC)
An organization that manufactures and markets products in many different countries and has
multinational stock ownership and multinational management
globally integrated enterprise (GIE)
An organizational structure in which work process and executive functions are distributed around the
world through global centers rather than developed in a home country and replicated in satellite
countries or regions
Example: International Business Machines (IBM) Corporation is an American multinational information
technology company headquartered in Armonk, New York, with operations in over 170 countries.
global segmentation
identifies a group of consumers with common needs and wants that spans the entire globe
Race to the bottom
the idea that free trade gives states the incentive to lower regulations and standards in order to beat
out the competition in producing goods cheaply.
Modularization
the process of breaking down a program into modules.
Modularization also works in consumer products such as furniture. The famous IKEA bookcase "Billy" is
another example for modularization. It is assembled from very standardized basic parts or modules, but
can be put together or expanded in many different ways customized to different tastes.
Define specific task
Define requirements and standards for that task
Maintain close contact or Quality of Service (QoS)
agreement with "client"
States regulation Role
