Deck 6: Globalization of Economic Activities

Question 1

The 1970s is often seen as heralding a crisis in Fordism in the core countries of the world economy. What was the primary factor behind this crisis?

A) declining industrial demand and profits
B) technology
C) welfare spending
D) political volatility

Answer 1

A

Question 2

How was the Internet invented?

A) by Apple
B) by Al Gore
C) by the US Defense Department
D) by Xerox

Answer 2

C

Question 3

The restructuring of business corporations lies at the centre of post-1970 globalization. Why were US and other large businesses particularly drawn to develop factories in countries other than their home ones after 1970?

A) lower labour costs
B) exploit foreign-owned technologies
C) avoid taxes
D) lower transport costs

Answer 3

A

Question 4

Corporations have increasingly turned to "externalization" of functions to lower costs and improve profits. What is this?

A) sending experts to other places
B) closing in-house offices and hiring other firms to replace them
C) moving operations abroad
D) engaging in strategic alliances and/or replacing internal offices with specialized outside firms

Question 5

New industrial districts are an example of one of the flexible production systems that have come to the fore since the 1970s. What is their major economic feature?

A) they exploit agglomeration economies
B) they are based on common resources
C) they are based on economies of scale
D) they rely on family labour