Globalization can make some product markets more contestable. Which one of the following characteristics of globalization is the most likely explanation for such an increase in contestability?
A. A reduction in protectionism.
B. Greater synchronization of economic cycles between countries.
C. Higher levels of labor migration.
D. The growth of employment in emerging market economies.
West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:
a. globalization of production
b. globalization of markets
c. dislocation of a developing nation’s economy
d. restriction on foreign direct investment
Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than two countries. As a result, it would be most appropriate to refer to Silver Fire Electric as what type of enterprise?
a. universal
b. private
c. multinational
d. public
Which of the following best illustrates the globalization of production?
a. Daily Diamonds, an American jewelry manufacturer, buys diamonds from South Africa and exports them to India for the cutting process.
b. Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market.
c. Uncle Crab, a U.K. fast-food chain, has been serving customers worldwide through its franchises.
d. Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services.
ABC Company, which is headquartered in the United States, has production plants in Mexico and Vietnam. According to this information, ABC Company is:
a. against globalization
b. a multinational enterprise
c. engaging in the globalization of markets
d. a local company
