EXAM_II - University of Houston INTB 3353: Economics of...

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University of Houston Fall 2007 INTB 3353: Economics of Globalization Professor Ruxandra Prodan Exam #2 - answers Name:_________________________________________________________________ 1. Outsourcing is: a. relocation of an organizational function to a foreign country b. transfer of an organizational function to a third party c. transfer of an organizational function to a third party, when the party is located outside the country Answer: b 2. In relation to outsourcing, the domestic reduction in wages is due to: a. firings b. acceptance of lower wages by workers being afraid to be replaced c. fired workers accepting higher paid jobs with more benefits d. a and b e. all of the above Answer: d 3. Ford’s research and development center in India is an example of: a. domestic outsourcing b. offshore outsourcing c. off-shoring d. insourcing Answer: c 4. Chevrolet’s contract with Dell for IT services is an example of: a. domestic outsourcing b. offshore outsourcing c. off-shoring d. insourcing Answer: a
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5. According to article” French Riots - Are Labor Policies Part of the Problem?” which of the following aspects of French labor policy does not necessarily marginalize young, less qualified workers? a. Minimum wages b. Workplace safety standards c. Firing restrictions d. Payroll taxes Answer: b 6. Which of the following is the least likely to influence the natural rate of unemployment? a. monopolies in the goods market b. labor unions c. payroll taxes d. unemployment insurance benefits e. monetary policy Answer: e 7. The Employment Protection Legislation (EPL): a. Reduces probability of unemployment (p) b. Reduces probability of finding a job (s) c. Increases the probability of finding a job(s) d. A and B e. A and C Answer: d 8. All of the followings are objections to outsourcing except : a. Outsourcing causes increased unemployment b. Outsourcing causes reduction in wages & benefits c. Outsourcing increases incentives for raising productivity d. Outsourcing provides private corporations with a means to escape government regulation e. Outsourcing provides private corporations with a means to escape taxation Answer: c 9 . Offshore outsourcing: a. is expected to increase domestic unemployment (primary effect) b. is expected to increase offshore employment c. might increase domestic employment (secondary effect, due to the impact on international trade) d. all of the above
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Answer: d 10. According to Thomas Friedman and his book “The World is Flat – A Brief History of the Twenty- First Century” which one is NOT part of the “forces that flattened the
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This note was uploaded on 02/23/2010 for the course BUSINESS intb 3353 taught by Professor Prodon during the Spring '10 term at University of Houston.

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EXAM_II - University of Houston INTB 3353: Economics of...

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