Week 6 Part 1

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Questions and Answers

What is the main aim of outsourcing discussed in the text?

  • To cut labor costs and enhance efficiency (correct)
  • To eliminate the need for advanced industrial countries
  • To establish monopolistic control over the market
  • To create more jobs in the home country

What are the two forms into which outsourcing has evolved, as mentioned in the text?

  • Retail-driven commodity chains and distributor-driven commodity chains
  • Producer-driven commodity chains and buyer-driven commodity chains (correct)
  • Manufacturer-driven commodity chains and service-driven commodity chains
  • Supplier-driven commodity chains and consumer-driven commodity chains

What is the pattern of consolidation mentioned in the text regarding the changing geography of production?

  • Consolidation into fewer, larger East Asian firms capable of handling major brand orders (correct)
  • Consolidation into smaller, dispersed firms across multiple continents
  • Consolidation into numerous independent firms with limited production capacity
  • Consolidation into large European firms with diverse production capabilities

What may the emergence of giant transnational contractors from Taiwan and China potentially lead to, as stated in the text?

<p>A geographic economic shift to Asia (C)</p> Signup and view all the answers

What is the main challenge in enforcing labor standards in outsourced factories?

<p>Global competition and lack of international regulations (B)</p> Signup and view all the answers

What distinguishes a buyer-driven commodity chain from a producer-driven one?

<p>Powerful buyers play a dominant role in shaping and controlling the commodity chain (A)</p> Signup and view all the answers

What challenges do workers in developing countries face in the context of outsourcing and global commodity chains?

<p>Low wages, poor working conditions, and limited bargaining power (D)</p> Signup and view all the answers

What is the potential impact of powerful buyers on labor practices and rights in commodity chains?

<p>Affecting labor practices and rights (D)</p> Signup and view all the answers

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