Answer the following statements true (T) or false (F)

Question

1. The global economy has had a revitalizing effect on some parts of industrial America.
2. Among the negative effects of global interdependency are outsourcing and higher-priced goods. 
3. Mergers have surged in the past 20 years because many industries are not suited to midsize or small companies. 
4. The Internet has made it more difficult for small firms to get started because now everyone must compete on a global scale. 

Answer 1

1. TRUE
Foreign firms are building plants in the United States, revitalizing parts of industrial America. Indeed, foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services). Companies based overseas provide jobs for approximately 10% of the U.S. workforce.
2. FALSE
One negative effect of global economic interdependency is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs, particularly in manufacturing. But globalization typically leads to better and more affordable products.
3. TRUE
The last 20 years have seen a surge in mergers. Certain industries, like oil, telecommunications, automobiles, financial services, and pharmaceuticals for instance, aren't suited to being midsize, let alone small and local, so companies in these industries are trying to become bigger and cross-border. The means for doing so is to merge with other big companies.
4. FALSE
The Internet and the World Wide Web allow almost anyone to be global, which has an important result: small companies can get started more easily. Because anyone can put goods or services on a website and sell worldwide, this wipes out the former competitive advantages of distribution and scope that large companies used to have.