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Business English Exercises
 

Global Production Systems

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Home > Teaching Business English > Business English Lessons, Advanced Level # 245
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The global and national economies, as well as individual industries and firms, have undergone a tremendous amount of restructuring in the past several decades.

Correct answer: (c) undergone

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Until the 1970s, the global economy was primarily composed of national companies operating mainly within their borders, and the system was characterized by shallow integration versus the deeper integration of today, in which global production systems distribute production across the globe.

Correct answer: (a) borders

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Linkages across firms and countries have strengthened as trade has greatly expanded and production has moved southward.

Correct answer: (d) Linkages

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No longer does a single firm control all of a company's activities, but rather the system operates from a network-centric perspective and a firm is disconnected from the customers it serves for instance, Nike now has 900 suppliers and 650,000 workers spread over 50 countries.

Correct answer: (c) perspective

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But while there has been a diffusion of production, the control has solidified on the retail side as a result of consolidation among top-tier firms and a proliferation among potential suppliers.

Correct answer: (d) tier

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The increase in world agricultural trade is partly a result of the greater market access that produce receives as compared to other agricultural products, especially under preferential trade agreements such as NAFTA and the Lome Convention.

Correct answer: (c) preferential

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Accompanying this increased trade has been a restructuring of the market from a fragmented industry with low barriers of entry to a market dominated by retail oligopolies that control over half of the fresh produce sold.

Correct answer: (a) barriers

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This has caused a change towards greater quality, supply chain efficiencies, and product differentiation.

Correct answer: (a) chain

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The result of this concentration and higher standards has been a decline in smallholders who are unable to meet all the new requirements and a downward pressure on prices and wages, a widening gender gap in terms of wages, and increased insecurity among workers in the industry.

Correct answer: (d) smallholders

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Technological advancements happen at such a rapid rate that it is hard for a country to keep up and remain competitive.

Correct answer: (b) keep

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