While Unintended, What Is an Adverse Consequence of Globalization

question 64

Multiple Choice

While unintended, what is an adverse consequence of globalization?

• A) nationalization of private sector holdings
• B) lower and more competitive oil prices
• C) reduced variety and quality of goods and services
• D) worker exploitation and domestic job losses
• E) provision of loans from the World Bank

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Definitions:

Market Price

An indication of how much a particular good, security, or commodity is valued in a marketplace at any given time.

Cost of Equity

The return that investors expect for their investment in a company's equity, representing the compensation for the risk taken.

Market Risk Premium

The excess return that investors require from an investment in the stock market over a risk-free rate. This premium compensates investors for taking on the higher risk of investing in stocks.

Risk-Free Rate

The theoretical rate of return on investment with zero risk of financial loss, often represented by government bonds.