Globalization Lesson 2

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What does globalization of production refer to?

Sourcing goods and services locally to support domestic economies.

Producing goods and services only for the domestic market without considering international factors.

Sourcing goods and services from a single location to reduce costs.

Sourcing goods and services from different locations to utilize differences in factors of production. (correct)

What is a key benefit of globalization mentioned in the text?

Decreased efficiency in global operations.

Increased revenue opportunity through global sales. (correct)

Reduced revenue opportunities due to global competition.

Isolation from international markets.

What characterized mercantilism, as described in the text?

Countries focused on maximizing imports and minimizing exports.

Countries aimed to import more than they export.

Countries sought to export more than they imported. (correct)

Countries prioritized self-sufficiency and minimal trade.

Which of the following is NOT a factor causing globalization as mentioned in the text?

Technological stagnation Signup and view all the answers

What differentiates norms from culture as described in the text?

Culture encompasses values and norms, while norms prescribe appropriate behavior. Signup and view all the answers

What is one of the challenges mentioned in the text regarding globalization?

Superficial similarities between nations Signup and view all the answers

Which theory predicts that countries will export goods that make intensive use of locally abundant factors?

Heckscher-Ohlin Theory Signup and view all the answers

What does the Theory of Absolute Advantage suggest countries should specialize in?

Goods for which they have a competitive advantage Signup and view all the answers

Which theory focuses on producing at a lower cost?

Theory of Absolute Advantage Signup and view all the answers

What does comparative advantage measure?

Opportunity cost of producing a good Signup and view all the answers

According to David Ricardo, how can a country boost its economic growth the most?

Focusing on industries with the most substantial comparative advantage Signup and view all the answers

What is the opportunity cost of producing clothing if the US produces it according to the text?

$5 foregone for every 12 aeroplanes produced Signup and view all the answers

Which stage of the Product Life Cycle Theory involves foreign producers beginning to produce for their home markets?

Stage 4 Signup and view all the answers

According to Porter's National Competitive Advantage theory, what are the crucial features that determine the success of an organization in the international market?

Home country factors Signup and view all the answers

At which point in the Product Life Cycle Theory do producers from advanced countries with lower labor costs start exporting to the U.S.?

Stage 6 Signup and view all the answers

How can governments act as catalysts to improve a country's competitive advantage according to Porter's Diamond Theory?

By providing incentives for research and development Signup and view all the answers

Which factor limits the potential for exports from the U.S. in the Product Life Cycle Theory?

Foreign producers setting up facilities in their home markets Signup and view all the answers

In which stage of the Product Life Cycle Theory do U.S. firms consider setting up production facilities in advanced countries?

Stage 4 Signup and view all the answers

Globalization Lesson 2

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