Question

The components of Nike tennis shoes are produced in different parts of the world. The final assembly of the shoes is completed in China. Thereafter the shoes are shipped to the United States, where David purchases a pair at a suburban mall in Denver. Of the following economic phenomena, which does this scenario best represent? a. economic restructuring b. outsourcing c. skill-biased technological change d. globalization

Answer 1

Answer:

Globalization

Explanation:

• Economic restructuring: it refers to the phenomenon of shifting between two types of economies (from a manufacturing to service economy or agricultural to manufacturing economy)
• Outsourcing: refers to obtains good from an outside supplier instead of from an internal source.
• Skill-biased technological change: is a shift in production that favors skilled over unskilled labor.
• Globalization: it refers to the interdependence of the world's economies, cultures, and populations by cross-border trade of goods and products.

In this example, the components of Nike tennis shoes are produced in different parts of the world, assembled in China and sent to the States.

Since this refers to the interdependence of different countries economies, this is an example of Globalization.