1. Which of the following is an example of offshoring?

Morgan Stanley, which is based in the United States, hires a Korean worker as an investment banker in an office in Korea.

A hospital in Bangalore, India, hires a new doctor in response to the demand for medical care from India's burgeoning middle class.

Many of the people in Charles's town lost their jobs when the local manufacturing plant closed down due to foreign competition. As a consequence, Charles lost his job at the local diner because there weren't enough customers.

Morgan Stanley, which is based in the United States, hires an Indian worker in an office in the United States.

2. Thomas L. Friedman, a columnist for the New York Times, advanced a theory that he called the "Golden Arches theory of conflict resolution." What does that theory state?

"The expansion of McDonald's has led to a decrease in world hunger, thereby reducing the need to fight over scarce caloric resources."

"Americans' consumption of junk food has led to an increased need for health care, which will be the growth industry of the twenty-first century."

"Just as McDonald's has come to dominate the global fast food market, the United States has the world's dominant military, and can impose a Pax Americana on the rest of the world, thereby reducing conflict."

"No two countries that both had McDonald's have fought a war against each other since each got its McDonald's."