Which of These Is NOT a Commonly Made Argument Regarding

question 61

Multiple Choice

Which of these is NOT a commonly made argument regarding the impact of globalization on environmental protection?

• A) As globalization improves economic prosperity in other countries, they will become stricter in their regulations.
• B) Firms have an incentive to locate production where environmental laws are more laid-back.
• C) The major trade agreements do not address environmental protection.
• D) A country may use environmental concerns as an excuse to engage in trade protectionism.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or production level of a business.

Fixed Costs

Expenses that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and loan payments.

Break-even Volume

The quantity of sales needed for a product to generate revenue that matches the total costs, resulting in no profit or loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.