GE 03: MIDTERM BSCpE 1A

A local textile company decides to source its raw cotton from Egypt, manufacture fabrics in Vietnam, and design clothing in Italy, which are then sold in various markets worldwide. This business model primarily exemplifies which dimension of globalization?

• Global orientation of organizational structure

• Global sourcing of factors of production

• Planning to expand business on a worldwide scope

• Creating product development on a global market sphere

If a country specializes in producing a good at a lower opportunity cost than another country and then trades this good internationally, which economic theory is being applied?

• The Theory of Absolute Advantage

• The Theory of Comparative Advantage

• The Theory of Market Integration

• The Theory of Economic Liberalization

A well-established domestic company decides to enter a foreign market by partnering with local distributors to sell its existing products. According to the stages of globalization, what would be its logical next step to deepen its global presence?

• Move to a full insider position with R&D and engineering support.

• Carry out manufacturing, marketing, and sales in key foreign markets.

• Take over the distribution and sales activities on its own.

• Transition to a genuinely global mode of operation with global localization.

A multinational corporation faces a dilemma: maintain its globally standardized product for efficiency or adapt it significantly to cater to unique local preferences in various countries. Which aspect of globalization does this challenge directly relate to?

• Political Globalization

• Economic Globalization

• Global Localization

• Cultural Globalization

The increased use of online banking, e-commerce platforms, and electric vehicles across diverse nations indicates which core concept of globalization?

• Political integration through international organizations.

• The historical foundation of globalization in ancient times.

• Everyday indicators of globalization at work.

• The philosophical underpinnings of globalization.

Critics argue that unregulated globalization can lead to a 'race to the bottom' in terms of labor standards and environmental protection in developing countries. This concern primarily aligns with which demerit of globalization?

• Reduced transportation costs.

• Workers facing pay cut demands.

• Increased innovation from fresh ideas abroad.

• Unfettered capital flow keeping interest rates low.

A country opens its economy to foreign direct investment in its key manufacturing sector, hoping to attract global capital and expertise. However, this leads to several domestic enterprises struggling to compete and eventually closing down. This scenario illustrates which potential demerit of globalization?

• Increased living standards.

• Threat to national sovereignty.

• High foreign stake affecting domestic economic growth.

• Export jobs paying more than other jobs.

The widespread popularity of K-dramas from Korea and fast-food chains like McDonald's in the Philippines is an example of which major area of globalization?

• Economic Globalization

• Political Globalization

• Cultural Globalization

• Technological Globalization

If a global manager is developing a marketing strategy for a new product, but needs to consider local customs, consumer behavior, and regulatory frameworks in each target country, they are essentially applying which key point of the nature of globalization?

• Making and selling products in many countries.

• Sharing resources like money, ideas, and staff.

• Protecting and selling ideas worldwide.

• Having a strategy that works globally but adapts to local needs.

The concept that 'what happens in one place can now affect people far away' due to the intensification of worldwide social relations is attributed to which scholar?

• Martin Albrow

• Roland Robertson

• Anthony Giddens

• Theodore Levitt