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Chapter 2: Problem 140

Globalization, which occurs whenever companies shift their focus from a local or regional basis to an international basis, can lead to the outsourcing of jobs overseas. Which of the following is an example of globalization? (A) A car manufacturer invests in robots to assemble its cars and then lays off hundreds of workers who used to do that job. (B) A computer manufacturer finds it cheaper to outsource its customer service call center to workers in India instead of employing local workers. (C) A sales rep goes on vacation to Europe instead of going to California. (D) A Chinese company hires local Chinese workers for its factory in Beijing.

Short Answer

Expert verified
The correct choice is (B) A computer manufacturer finds it cheaper to outsource its customer service call center to workers in India instead of employing local workers. This is an example of globalization because the company is shifting its focus to an international basis by outsourcing jobs to a different country.

Step by step solution

01

Option A

A car manufacturer invests in robots to assemble its cars and then lays off hundreds of workers who used to do the job: This option is about the automation of jobs and not about shifting focus to an international basis. So, this option does not fit the definition of globalization.
02

Option B

A computer manufacturer finds it cheaper to outsource its customer service call center to workers in India instead of employing local workers: In this option, the computer manufacturer is outsourcing jobs to a different country - shifting focus to an international basis. It's an example of cost reduction by utilizing overseas workforce, which is an aspect of globalization. Therefore, this option fits the definition of globalization.
03

Option C

A sales rep goes on vacation to Europe instead of going to California: This option is about an individual's personal choice and has nothing to do with a company shifting its focus to an international basis or outsourcing jobs. So, this option does not fit the definition of globalization.
04

Option D

A Chinese company hires local Chinese workers for its factory in Beijing: This option is about a company hiring local workers, which doesn't involve shifting focus to an international basis. It's about the local job market within a country. So, this option does not fit the definition of globalization. After analyzing all the options, the correct choice is: (B) A computer manufacturer finds it cheaper to outsource its customer service call center to workers in India instead of employing local workers.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Outsourcing
Outsourcing is a practice where businesses transfer certain operations or tasks to external parties, often in different countries, to optimize resources and reduce costs. This process has become increasingly popular with globalization. Companies turn to outsourcing for several reasons:
  • Cost Efficiency: It is often cheaper to hire labor in countries where wages are lower. By outsourcing tasks like customer service or technical support to countries like India or the Philippines, companies can significantly cut labor costs while maintaining service quality.
  • Focus on Core Activities: By outsourcing non-core functions such as accounting, payroll, or IT services, businesses can concentrate more on strategic tasks and innovation. This allows them to focus their internal resources on activities that directly contribute to the company鈥檚 growth.
  • Access to Expert Services: Outsourcing enables companies to tap into a global talent pool. External vendors often bring specialized skills and advanced technology, which a company might lack locally.
Outsourcing is not without challenges, such as communication barriers and differences in time zones, but the potential benefits make it a vital strategic tool in international business.
International Business
International business involves commercial transactions that cross borders between two or more nations. This can take many forms, such as exporting, importing, licensing, franchising, and direct investment. Globalization has made international business a norm for many companies aiming to expand and access new markets. Here鈥檚 how companies engage in international business:
  • Market Expansion: By entering new geographical markets, companies can sell their products or services to a broader audience, thus increasing their sales potential. This can be done by setting up subsidiaries in foreign countries or forming partnerships with local businesses.
  • Diversification: Engaging in international business allows companies to diversify their operations and mitigate risks associated with economic fluctuations in one region. Operating in multiple countries can safeguard their revenue streams.
  • Access to 91影视: Companies often move operations internationally to access raw materials or labor in regions where they are more abundant or less expensive. This includes activities like setting up manufacturing plants or collaborating with local suppliers.
Understanding cultural differences, navigating legal requirements, and managing currency risks are crucial aspects of successfully conducting international business.
Workforce Dynamics
Workforce dynamics refers to the changing characteristics of workers and employment patterns, particularly in response to global influences. In today鈥檚 interconnected economy, these dynamics have evolved significantly due to globalization:
  • Multicultural Teams: As companies become more international, having a diverse team becomes common. This diversity brings innovative ideas and solutions, benefiting a company鈥檚 adaptability and creativity. However, it also requires an understanding of cultural differences to manage teams effectively.
  • Flexible Work Arrangements: Globalization has pushed companies to adopt flexible work practices, such as remote work and flexible schedules, allowing them to attract talent globally. These arrangements can increase productivity and employee satisfaction.
  • Skills and Training: The workforce must continually update its skills to keep up with technological advancements and global trends. Companies invest in training and development programs to ensure their employees remain competitive.
Effective management of workforce dynamics can lead to improved performance and innovation, making it essential for companies operating globally to thrive in competitive markets.

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Most popular questions from this chapter

Which amendment to the Constitution stated that the powers not delegated to the federal government or prohibited to the states were "reserved to the states"? (A) Tenth Amendment (B) Nineteenth Amendment (C) Twenty-fifth Amendment (D) Thirty-second Amendment

Why did Alabama state police violently attack the peaceful protestors during Bloody Sunday? (A) The state troopers were part of the racist establishment in Alabama who were trying to prevent African Americans from speaking out for their right to vote. (B) The state troopers were trying to prevent African Americans from taking away white Americans' right to vote. (C) They had read about Bloody Sunday and knew that it was expected of them. (D) They had disobeyed Governor Wallace's orders to protect the peaceful protestors.

What was the impact of the Brown v. Board of Education decision? (A) It upheld state racial segregation laws for public facilities under the doctrine of "separate but equal." (B) It prevented racial segregation in all public places. (C) It undermined the validity of the Supreme Court. (D) It led to the desegregation of the U.S. public school system.

What ultimate goal did Elizabeth Cady Stanton and Susan B. Anthony hope to achieve? (A) Their goal was to persuade the U.S. government to abolish slavery. (B) Their goal was to persuade the U.S. government to allow women the right to vote. (C) Their goal was to each find a husband who would make all their decisions for them. (D) Their goal was to point out the horrors of slavery.

\- During the Industrial Revolution, Great Britain quickly became the world's top producer of goods. Which of the following was NOT a factor in Britain's rise to dominance in world trade during the 1800 s? (A) Great Britain had made advances in the steam train and had developed a rail network, making the transport of goods relatively easy. (B) Great Britain had lots of coal available to power the machines needed for the mass production of goods. (C) Great Britain imposed tariffs on goods imported from other countries. (D) Great Britain's extensive colonization gave it access to raw materials.
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