Management Information System (MIS) Practice Exam

Which of the following represents an economic change due to globalization?

1. Development of low-cost computing platforms

2. Increases in the frequency of worldwide fads

3. Availability of low-cost communication systems

4. Increases in the outsourcing of labor

The correct answer is: Development of low-cost computing platforms

The correct choice highlights how globalization has significantly impacted economies by fostering the development of low-cost computing platforms. This phenomenon can be attributed to the increased competition and collaboration resulting from globalization. As companies expand their reach across borders, there is a greater incentive to innovate and reduce costs in order to maintain competitiveness. The creation of low-cost computing platforms facilitates access to technology for businesses of all sizes, allowing them to operate more efficiently and effectively. This, in turn, drives economic growth as firms can leverage technology to improve productivity, enhance services, and deliver more innovative products to consumers. While all the other options reflect aspects of globalization, they do not specifically capture the economic change represented by the advancement of cost-effective computing technology. The availability of low-cost communication systems, for instance, pertains more to connectivity rather than a direct economic transformation. Similarly, increases in worldwide fads relate to cultural trends and consumer behavior, while the outsourcing of labor, although connected to globalization, doesn’t focus on technology's role in reducing operational costs. All these factors interconnect, but the development of low-cost computing platforms stands out as a clear representation of an economic change prompted by globalization.