Which of the Following Scenarios Most Accurately Portrays the Role

question 10

Multiple Choice

Which of the following scenarios most accurately portrays the role of global value chains in globalization?

• A) Companies are increasingly laying off employees and shutting down altogether, forcing many workers to look for jobs overseas.
• B) Corporations are setting up different phases of production and assembly in two or three other countries, which creates a global link.
• C) Governmental and political incentives to produce goods domestically are driving companies to make products locally and sell them to a wider variety of countries.
• D) New immigrants are increasingly working their way into local corporations, which establishes new global connections for companies.

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Definitions:

Importer

An individual or company that buys goods or services from another country for the purpose of selling them within their own country.

Society of Worldwide Interbank Financial Telecommunications

An international messaging network that financial institutions use for securely transmitting information and instructions related to financial transactions.

International Payment Transfers

Financial transactions that involve the sending of money across international borders.

Global Telecommunications

Worldwide infrastructure and services for the exchange of information through electronic networks.