IGCSE Development Studies: Specimen Questions with Answers 48 - 49 of 98

Passage

Understand by Globalization

Question 48 (6 of 8 Based on Passage)

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“Practice of hiring a company outside the company to carry out tasks and services and produce goods in the similar manner as it was performed by the company՚s own employees.” Explain the statement.

Explanation

“Practice of hiring a company outside the company to carry out tasks and services and produce goods in the similar manner as it was performed by the company՚s own employees.”

The above statement explains about outsourcing. Outsourcing is defined as a process of transfer of complete business which was traditionally operated and managed internally to an independently external service provider.

It includes:

  • Complete Transfer of all associated internal business process activities.
  • When outsourced, the people, equipment, technology, facilities, and other assets are not maintained internally by the organization.

Question 49 (7 of 8 Based on Passage)

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What do you understand by globalization?

Explanation

Globalization is a process of interacting and sharing technology, knowledge, skills with other nations through different modes like:

  • Trade
  • Political co-operation
  • Science
  • Media
  • Culture Exchange

It is the ongoing social, economic, political process that broadens and deepens the relationship and interdependencies amongst different countries, their people, government, and firms. International business is responsible for facilitating the process of globalization. The power remains in the hands of stock bonds and currency traders moving fund. It is beneficial for the multinational corporations looking for more efficient, low cost producers.