1.6 Shopping in the dark

Globalisation has affected some places and organisations more than others. Which of the following is important in the spread of globalisation according to the study pointers?

• The decrease of TNCs

• The importance of TNCs

• The reduction of global production networks

• The decline of economic liberalisation

What does offshoring mean?

• Hiring workers within the same country

• Getting work done in a different country

• Contracting work out to an external organization

• Reducing the workforce to lower costs

Which of the following is a risk associated with offshoring?

• Increased efficiency

• Language differences

• Specialized skills

• Labor flexibility

What is a benefit of offshoring?

• Misaligned interests of clients and vendors

• Increased geopolitical risk

• Lower costs and access to a global talent pool

• Lack of in-house knowledge of critical business operations

What does outsourcing refer to?

• Reducing the number of employees in a company

• Getting work done within the company by existing staff

• Contracting work out to an external organization

• Transferring jobs to other countries

Why do companies usually outsource work?

• To increase geopolitical risk

• To deal with language differences

• To take advantage of specialized skills and cost efficiencies

• To transfer jobs to other countries

What is horizontal integration?

• When a business reduces its size by selling off parts of the company.

• When a business grows by acquiring a similar company in their industry at the same point of the supply chain.

• When a business expands by acquiring another company that operates before or after them in the supply chain.

• When a business diversifies its product line to reach different markets.

What is vertical integration?

• When a business grows by acquiring a similar company in their industry at the same point of the supply chain.

• When a business expands by acquiring another company that operates before or after them in the supply chain.

• When a business merges with a company in a completely different industry.

• When a business splits into smaller, independent companies.

What is glocalisation?

• The process of standardizing products for a global market without any local adaptation

• The adaptation of global and international products into the local contexts they're used and sold in

• The removal of products from local markets to focus on international expansion

• The marketing strategy that focuses solely on local traditions without considering global trends

Why do TNCs engage in glocalisation?

• To reduce the cost of their products by using cheaper local materials

• To avoid international trade and focus on local markets

• To adapt their products to local contexts and increase their appeal in different markets

• To standardize their products and avoid customization