A Frequently Unforeseen Consequence of Global Expansion Is That Healthy

question 4

True/False

A frequently unforeseen consequence of global expansion is that healthy markets, especially the home market, are put at risk by the diversion of resources.

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Definitions:

Hurricane Katrina

One of the deadliest hurricanes to hit the United States, causing widespread destruction along the Gulf coast, particularly in New Orleans, in August 2005.

Price Floor

A government-imposed limit on how low a price can be charged for a product, aimed to ensure fair conditions for producers.

Temporary Surplus

A situation where the supply of a product exceeds demand for a short period, often leading to price reductions.

Permanent Surplus

A situation in which the supply of a particular good or service persistently exceeds demand, often leading to long-term price declines.