Which Of The Following Statements About Globalization Is Correct? (Check All That Apply)

What Is Globalization | Answer Of MCQ

Globalization means interconnections and interdependence of different countries' economics, cultures, knowledge, skills, human resources across the countries. One company of a country can exchange its products or services in the local market of another country. For example, people of different countries are globally interconnected to exchange ideas, knowledge, products or services due to the usage of advance technology system.

The correct of options of this Multiple Choice Question (MCQ) are D and G as in globalization, different companies of different countries create challenges for each other across the country i.e., one mobile company may sell mobile phones cheaper than other one and hence create a high competition and demand in the international market / foreign market. Selling in local market and foreign market are different as in foreign market, different strategies and uses of resources such as physical, human, financial, intellectual and technological are different due to differences in consumers’ behaviors, market conditions and expectations, demand and supply, government laws, environmental changes, law and order situations, etc. in local market and foreign market. For example, if the consumers’ behaviors are to buy products in bulk at discounted price than in local market, then the company should adapt the marketing strategy accordingly. If there is a government law to close the market due to security situation after 10:00 PM internationally, then the management should adapt the strategy by taking into consideration this law.

In developing countries’ local markets, there are high demands for high quality products of international or multi-national company. By setting reasonable price, the company can contribute major share of revenue to such market and attract local customers.

New And Improved Technological Changes

Due to advancement in technology, new and updated changes in products are adopted which creates a competition among companies in the international market which increase the quality and demands of products and services in the minds of customers. For example, new designed model laptops and personal computers (pc), keyboards, mouse, etc., are launched in the market to attract customers at reasonable price with better quality. This is due to rapid changes and introducing of new technology. With the invention of new technology systems, the old technology systems are no longer needed in the market. So, the demand for new technology systems increases in the international market.

Innovation

New and improved methods are created to make better products & services i.e., use of advanced machinery to make furniture, car, mobile phones, etc. Change in products’ designs, taste that customers likes e.g., what the customers like the most in products or services, are adopted.

In developed countries, as there is less population, so they require new more skilled human resources to be worked in their companies, so in these countries, the demand for skilled human resources increases. On the hand, in developing countries, there is a lack of technology and use of advanced tools, so the demand for such technology resources in the local market increase and as a result both countries provide benefits to each other according to demand & supply of products & services in the market.

Incorrect Options of MCQ

The other options (A, B, C, E and H ) of this mcq are not correct choices here as these statements do not fall under the definition and meaning of globalization such as only focuses on national borders are not globalization as it is the exchange of goods, services, ideas, knowledge, technology, etc., across the world globally and not within the boundary of a country.