Overview
Part I. Multiple choice questions. Please choose the most appropriate answer to each question.
1.Services employment has replaced manufacturing employment in more developed countries primarily because
A) manufacturing is contained by location, production and consumption.
B) services are constrained by location, production and consumption.
C) manufacturing activities have largely shifted to low-cost developing countries.
D) the services sector is so complex.
E) of off-shore banking.
2.Why do consumers require more service products today than in the past?
A) Physical commodities are becoming more complicated.
B) As work requires more hours on the job, people have less time to do things themselves.
C) Marketers persuade us to consume new types of services.
D) As income rises, people can afford more services.
E) all of the above
3.Which of the following services has a particularly low income elasticity?
A) health care
B) travel
C) entertainment
D) transportation
E) a day at the spa
4.All of the following are reasons why a firm chooses to externalize a needed task, EXCEPT
A) limit flexibility.
B) decrease transaction costs.
C) reduce risk.
D) concentrate on core skills.
E) gain flexibility.
5.Income in services is more bifurcated than that in manufacturing. What does this sentence mean?
A) Incomes in services tend to be more seasonal.
B) Firms that produce services are more productive and therefore more wealthy than manufacturers.
C) Professional service providers generate high incomes while non-skilled and low-skilled service providers make low wages.
D) The income that firms produce from services is taxed at a higher rate than that produced from manufacturing.
E) The income that firms make from delivering services is distributed more evenly among employees than occurs in manufacturing firms.
Part II. Essay questions.
1. The research report by Brookings Institute: Global manufacturing scorecard compares the manufacturing environment among selected countries. Please refer to the report (click the link above) to answer the following questions.
1)What are five dimensions of manufacturing environment that the report focuses on?
2)Based on the report, what is the policy suggestion to the U.S. government?
3)The report emphasizes that “economic and political stability alongside open trade policies are necessary for investors and industry leaders.” Based on the report, what does this mean for manufacturing business?
2.There is no doubt that consumption is one major driving force of world economy. The research report from McKinsey and Company “URBAN WORLD:THE GLOBAL CONSUMERS TO WATCH” indicates that certain groups should be given special attention to. Please refer to the research report (click the link above) to answer the following questions.
1)What are the nine groups of consumers we need to pay special attention to? Why do they matter to the world consumption and economic growth?
2)What are the “special three”, which are especially important and why?
3)What are some possible business strategies to cooperate with these world consumption projections?