Question

1) Which of these is the BEST example of the term "outsourcing"?

A) a car manufacturer in Michigan imports parts from China
B) a grass-cutting company hires workers from Great Britain
C) low unemployment encourages high immigration from poor countries
D) a bank hires workers in Canada to staff its customer service phone line

2) Rubber became a valued commodity during the latter part of the Industrial Revolution. Rubber was needed in the manufacturing of everything from tubes, hoses and later tires. Natural rubber trees could be found in different parts of Africa but especially the Belgian colony of Congo. King Leopold implemented a harsh forced labor system that resulted in a 50% population loss. Under his rule, companies controlled the vast majority of land and resources in order to produce more rubber.

3) Using the prompt, which is the BEST conclusion that can be drawn?
A) Congo became a center of manufacturing.
B) More urban cities were developed in Congo.
C) Less food crops were being grown in the Congo.
D) More infrastructure was built in the Congo to the meet the needs of workers.
Which of these is MOST LIKELY an effect of illicit drug production and trade on Guatemala?
A) a decrease in drug-related prostitution
B) a decrease in drug-related gang violence
C) an increase in support for public officials
D) an increase in careful supervision of young children
4) Which of these eras brought about the end of the European economic practice of mercantilism?
A) Colonial Era
B) Industrial Revolution
C) Scientific Revolution
D) Protestant Reformation

Answer 1

The best example of outsourcing is choice A, a manufacturer based in Michigan importing parts from China.

The best conclusion that can be drawn is that the Congo became a center of manufacturing.

An increase in careful supervision of young children.

The industrial revolution led to the decline of mercantilism.

Answer 2

The best example of the term 'outsourcing' is D: a bank hires workers in Canada to staff its customer service phone line. This implies that the bank is based in another country (i.e. its not in Canada) and contracts individuals in Canada to handle its customer service relations. Outsourcing is normally done to cut costs for large multinational companies. Generally, the business chooses the new location because it would be much cheaper to have the operations there than in their home country. Example A is simply the standard process of importation that all businesses undergo. Example B is a facet of the hiring process and furthermore there was no indication of where the hiring was taking place; a key part of outsourcing is having different locations whereas Example C is just the standard migration process.

3) The best conclusion that can be drawn is: C- Less food crops were being grown in the Congo. This was as at the heights of the colonial period, the majority of food that entered the colonies were imported from the 'mother state' so that as much of the land space as possible could be used to produce the crop of choice. In this case with the Belgian colony, the land space was needed for rubber tree production.

The most likely effect of the illicit drug production and trade in Guatemala would be C: an increase in the support for public officials. This is as the public would look to the state (public) officials to do the best they can so that they can go back to having a peaceful society.

4)The era that brought about the end of the European economic practice of mercantilism was B: Industrial Revolution. The Industrial Revolution was primarily driven Adam Smith's economic theories and the importance of producing what one was proficient at and trading that for items that one was not as proficient at.