Question

15.
(09.05, 09.06 MC)
In a global economy, where are most of the consumers likely to live? (4 points)
I. Middle East
II. Europe
III. East Asia
IV. Africa
I and II
I and IV
II and III
II and IV
III and IV
16.
(09.05, 09.06 MC)
Which BEST explains why Africa and East Asia are ideal locations for companies to find offshore labor? (4 points)
I. Labor is generally inexpensive.
II. There is a large poll of educated laborers.
III. Industrial practices are well developed.
IV. Laborers have access to the area's rich resources.
I only
III only
II and III
II and IV
III and IV

Answer 1

Question 1

The correct answer is: "II and III"

In the global economy, Europe and East Asia are two core locations in terms of potential consumers, the first due to the high income levels that generate a highest amount of goods and services demanded per person and, in the second region, due to the large population that resides in the countries of the area.

Question 2

The correct answer is: "I only".

The mentioned locations are ideal for companies from developed countries to practice outsourcing, that consists on transfering manufacturing facilitities to developing countries where they can produce at a lower cost due to lower labor costs and also, in general, more relaxed regulations and taxation systems.