IGCSE Development Studies: Specimen Questions with Answers 45 - 46 of 98

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Understand by Globalization

Question 45 (3 of 8 Based on Passage)

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What is the impact of outsourcing as a means of development?

Explanation

Outsourcing decreases the barriers to entry and increases the competition across the globe. It allows new entrants to enter the industries at lower cost.

Some of the Key Impacts of Outsourcing Are

  • Increased growth of business- Outsourcing is a new win-win situation it helps the companies to avail themselves of better-quality services at reasonable rates which yields flow of money to the hosting companies.
  • Reduced risk- Many countries from UK and US prefer outsourcing their services to various developing countries which has a pool of talent and follow strict data security policy. When companies outsource to the developing countries the risk of breach of data and sub-standard services are reduced.
  • Increased business efficiency- When companies opt for outsourcing, they get extra time to focus on the core areas which helps them in increasing the overall business efficiency.

Question 46 (4 of 8 Based on Passage)

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State 2 advantages and disadvantages of Globalization

Explanation

Advantages of Globalization

  • It helps other countries share information about technological developments to developing countries.
  • Globalization makes the economy of one country dependent on the economy of other countries.

Disadvantage of Globalization

  • Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor
  • Corporate influence of nations states far exceeds that of civil society organizations and average individuals.

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