Somewhere in Kenya, a girl logs on for a personalized math lesson from California-based Khan Academy. Thousands of Syrian refugees rely on Facebook updates for the latest information to guide their journey through Europe. A multinational energy giant launches plans to use sensors on 4,000 oil wells around the world to monitor production remotely. A manufacturer in Australia buys components from a Chinese supplier on Alibaba, and a clinical trial in India transmits patient data to US pharmaceutical researchers Flows of physical goods and finance were the hallmarks of the 20th-century global economy, but today those flows have flattened or declined. Twenty-first-century globalization is increasingly defined by flows of data and information. This phenomenon now underpins virtually all cross-border transactions within traditional flows while simultaneously transmitting a valuable stream of ideas and innovation around the world. . Increasing flow of data and information, effectively what we refer to as digitization, digitization changes the economics of globalization in several ways. From the following, identify that which is an incorrect implications of this trend. A) As digital platforms become global in scope, they are driving down the cost of cross-border communications and transactions, allowing businesses to connect with customers and suppliers in any country. B) Digitization of the global economy means new types of competitors can emerge rapidly from any corner of the world, and, as a result, industry incumbents are better able to consolidate their competitive position and market dominance.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Somewhere in Kenya, a girl logs on for a personalized math lesson from California-based Khan Academy.

Thousands of Syrian refugees rely on Facebook updates for the latest information to guide their journey through Europe.

A multinational energy giant launches plans to use sensors on 4,000 oil wells around the world to monitor production remotely.

A manufacturer in Australia buys components from a Chinese supplier on Alibaba, and a clinical trial in India transmits patient data to US pharmaceutical researchers

Flows of physical goods and finance were the hallmarks of the 20th-century global economy, but today those flows have flattened or declined. Twenty-first-century globalization is increasingly defined by flows of data and information.

This phenomenon now underpins virtually all cross-border transactions within traditional flows while simultaneously transmitting a valuable stream of ideas and innovation around the world.

Increasing flow of data and information, effectively what we refer to as digitization, digitization changes the economics of globalization in several ways.

From the following, identify that which is an incorrect implications of this trend.

A) As digital platforms become global in scope, they are driving down the cost of cross-border communications and transactions, allowing businesses to connect with customers and suppliers in any country.

B) Digitization of the global economy means new types of competitors can emerge rapidly from any corner of the world, and, as a result, industry incumbents are better able to consolidate their competitive

position and market dominance.

C) Globalization was once for large multinational corporations, but platforms reduce the minimum scale needed to go global, enabling small business and entrepreneurs around the world to participate.

D) More than ever before, companies and countries cannot afford to ignore the opportunities beyond their own borders

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