How Has Globalization Impacted Domestic Markets in the United States

question 2

Multiple Choice

How has globalization impacted domestic markets in the United States?

• A) Companies with only domestic markets have been able to sustain their customary rates of growth.
• B) Multinational companies are making more profits from their domestic operations compared to their earnings from the foreign markets.
• C) Only multinational companies with large production facilities have outperformed their strictly domestic U.S. counterparts.
• D) The domestic companies have reduced their manufacturing employment more than U.S. multinationals.
• E) Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or business activity, such as rent, salaries, and insurance premiums.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, representing how fixed costs dilute as more units are produced.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor used in the production of goods.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as rent, salaries, or loan payments.