Globalization Debate (Scenario) In His International Business Class, Professor Jang Organizes a Debate

question 78

Multiple Choice

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following most likely supports Rina's argument over Juan's concerning wages and working conditions in developing countries?

• A) Most African countries today still suffer from low or negative GDP growth.
• B) Vietnam has experienced a fivefold increase in wages as a result of the growth of the footwear industry there.
• C) The move of Electrolux to Mexico cost Michigan 2,700 jobs.
• D) Minimum wages should be established at set levels, regardless of the impact on the number of jobs.

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Definitions:

Noncash Investing

A financial activity that involves acquiring or disposing of assets without the immediate use of cash, such as through trading one asset for another or completing transactions through financing arrangements.

Fixed Assets

Long-term assets purchased for operating the business, not expected to be converted to cash within a year.

Investing Activities

Deals that include buying and selling assets with long-term value and investments outside of cash equivalents.

Operating Activities

Business actions related directly to the production and delivery of goods and services, reflected in the cash flow statement.