Economic Transformation Quiz

What has led to the transformation of the economic landscape from local to global scales?

• Decrease in transportation and communication technologies

• Increase in self-sufficiency of local economies

• Vast improvements in transportation and communication technologies

• Reduction in international trade

What is the result of companies using outsourcing in their business practices?

• Increased costs due to hiring more expensive employees

• Reduction in the need for international trade

• Contracting work to non-company employees or other companies to reduce costs

• Decrease in the interdependency of countries and their economies

Which of the following best describes offshoring?

• Companies hiring additional staff within their own country to increase production

• Companies relocating services or manufacturing to other countries if the costs are lower

• Companies moving operations to the core countries for better infrastructure

• Companies reducing their operations to focus on local markets

What is a geographic consequence of recent economic changes such as deindustrialization?

• Factories in the United States have moved from the Southeast to the Northeast and Midwest

• Companies have stopped outsourcing and offshoring their operations

• Factories in the United States have moved from the Northeast and Midwest to the Southeast and Southwest

• Companies have increased the wages of workers globally

What is the main reason for companies to offshore and outsource according to the text?

• To increase the quality of their products

• To benefit from lower production costs in other countries

• To improve employee working conditions

• To avoid government pressure and labor union demands

What has globalization led to in terms of employment in core countries?

• Decrease in tertiary, quaternary, and quinary jobs

• Increase in primary sector employment

• Increase in tertiary, quaternary, and quinary jobs

• Decrease in secondary sector employment

Which of the following is a characteristic of semiperiphery countries?

• They have declining secondary sector employment

• They mainly export goods to periphery countries

• They have a large primary sector and export resources to core and semiperiphery countries

• They manufacture goods that are marketed in core countries

What is the new international division of labor?

• A system where all countries focus on tertiary sector jobs

• A system where employment is distributed based on the economic sector

• A changed system of employment in various economic sectors worldwide

• A system where core countries outsource all jobs to periphery countries

Why might a company choose to locate in Mexico over the United States?

• Higher wages and benefits in Mexico

• Lower manufacturing costs in Mexico

• Larger market size in Mexico

• Better technology in Mexico

What is the primary reason for the concern of community leaders in core countries regarding the loss of manufacturing jobs?

• Manufacturing jobs are non-basic activities with limited multiplier effect.

• The loss of manufacturing jobs does not affect the local economy.

• Manufacturing jobs are basic activities that generate new wealth.

• Community leaders prefer tertiary sector jobs for their community.