Globalization Has Led to

question 91

Multiple Choice

Globalization has led to

• A)lower operational efficiency as firms must transport raw materials and finished goods farther.
• B)increasing loyalty of customers for products made domestically.
• C)declining returns from investment in research and development.
• D)higher product quality.

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Definitions:

Profit Motive

The primary incentive for businesses to operate and expand, driven by the pursuit of financial gain.

Pareto Efficient

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Net Benefit

The total positive impact of a decision or action, subtracting any costs or negative effects associated with it.

Trade

The exchange of goods, services, or both between parties, which can occur domestically or internationally.