In 1940, the Radio Corporation of America (RCA) moved its largest plant to Bloomington. It did this to increase profits. In 1998, the Bloomington plant closed, and RCA production moved to Mexico. Which of the following is this an example of? Select all that apply.

Question

(1 point)
Responses

globalization
globalization

digital divide
digital divide

martial law
martial law

creative destruction

Answer 1

The situation described is an example of:

• globalization: The relocation of RCA production to Mexico underscores the economic practice of globalization, where companies move their operations to different countries in search of lower production costs and increased profits.

• creative destruction: This concept refers to the process where old industries or business models are replaced by new ones. The closure of the Bloomington plant in favor of production in Mexico represents a shift in production methods and locations, indicative of creative destruction in the market.

The other options, "digital divide" and "martial law," do not apply to this situation.

So, the correct selections are globalization and creative destruction.