Dawn and Richard are managers at a multinational corporation. They are having a conversation about the impacts of globalization. “Globalization is a positive economic force for all countries,” Dawn argues. “If products are being produced at lower prices around the world, we’ll pay lower prices for them here in the United States.” She adds that people worldwide are essentially economic actors, aiming to maximize purchasing power utility by trying to find the highest quality product, irrespective of national origin, for the lowest possible price. “Those lower prices come at a cost,” Richard retorts. “While we may be better off as a result of globalization, poorer countries pay the brunt of the costs. Poor countries must eliminate environmental regulations in order to attract foreign companies, resulting in health problems for citizens in those countries. Furthermore, those new jobs overseas replace American jobs here at home. That harms our economy and contributes to high unemployment. We should avoid globalization to protect our own economy.” Dawn’s argument is based on which of the following assumptions? A) Multinational corporations benefit disproportionally from globalization. B) Lower prices for products in the U.S. create benefits for all countries. C) Poor countries are less important than the United States. D) Jobs created overseas are just as valuable as jobs created in the United States. E) Globalization has no negative effects for the United States.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Dawn and Richard are managers at a multinational corporation. They are having a conversation about the impacts of globalization. “Globalization is a positive economic force for all countries,”

Dawn argues. “If products are being produced at lower prices around the world, we’ll pay lower prices for them here in the United States.”

She adds that people worldwide are essentially economic actors, aiming to maximize purchasing power utility by trying to find the highest quality product, irrespective of national origin, for the lowest possible price.

“Those lower prices come at a cost,” Richard retorts. “While we may be better off as a result of globalization, poorer countries pay the brunt of the costs. Poor countries must eliminate environmental regulations in order to attract foreign companies, resulting in health problems for citizens in those countries.

Furthermore, those new jobs overseas replace American jobs here at home. That harms our economy and contributes to high unemployment. We should avoid globalization to protect our own economy.”

Dawn’s argument is based on which of the following assumptions?

A) Multinational corporations benefit disproportionally from globalization.

B) Lower prices for products in the U.S. create benefits for all countries.

C) Poor countries are less important than the United States.

D) Jobs created overseas are just as valuable as jobs created in the United States.

E) Globalization has no negative effects for the United States.

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