topic 7.7 changes as a result of the world economy

Question 1

Multinational (transnational) corporation:

Answer 1

:a company that operates in more than one country

Question 2

Where are most of these headquartered? (multinational transnational corporation)

Answer 2

Core countries

Question 3

Outsourcing

Answer 3

sending parts of the process to a different company or country to be completed

Question 4

Why have many companies outsourced to peripheral countries?

Answer 4

Cheaper land, cheaper labor, closer to resources, less environmental and labor regulations

Question 5

What type of jobs normally get outsourced to peripheral countries?

Answer 5

Manufacturing jobs, back office functions, etc.

Question 6

How have multinational corporations and outsourcing contributed to the rise of English as a global lingua franca?

Answer 6

Since most of the companies that are outsourcing are headquartered in America/other core countries, knowing English is important to conduct business

Question 7

What county is most attractive when looking to outsource back office functions from American companies? Why?

Answer 7

India–was once a British colony

Question 8

Maquiladoras
Where are they located?

Answer 8

Mexico

Question 9

Maquiladoras
Why there?

Answer 9

Cheaper labor, cheaper land, less environmental and labor regulations, and still close to the U.S.

Question 10

Maquiladoras
How are they beneficial to that country?

Answer 10

They provide jobs to Mexicans

Question 11

Special Economic Zones (SEZs):

Answer 11

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

Question 12

Which country has a LOT of SEZs?

Answer 12

China

Question 13

Export Processing Zones (EPZs):

Answer 13

an area within a country that is subject more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

Question 14

Free Trade Zones (FTZs):

Answer 14

a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Question 15

Four Asian Tigers/Dragons:
Which countries?

Answer 15

Hong Kong, Singapore, Taiwan, and South Korea

Question 16

Four Asian Tigers/Dragons:
What type of industry are they focused on?

Answer 16

Export oriented industries

Question 17

International Division of Labor:

Answer 17

a pattern of production and labor in which different countries are engaged in distinct aspects of production

Question 18

Fordism

Answer 18

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Question 19

Post-Fordism

Answer 19

system focused on small-scale bath production for specialized market and flexibility that allows for quick response to changes in the market

Question 20

Multiplier effect:

Answer 20

the economic effect in which a change creates a large changes, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

Question 21

Economies of Scale:

Answer 21

cost reductions that occur when production rises

Question 22

Agglomeration

Answer 22

the tendency of enterprises in the same industry to CLUSTER in the same area

Question 23

Just-in-time delivery:

Answer 23

a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Question 24

Growth poles:

Answer 24

a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset