Which of the Following Could Be a Threat Posed by Globalization

question 7

Multiple Choice

Which of the following could be a threat posed by globalization?

• A) Dependence on the global market makes an economy susceptible to unfavorable changes in its long-run exchange rate.
• B) An increase in the knowledge and familiarity with other cultures.
• C) A possible increase in the living standards of developing nations due to job creation.
• D) A possible decline in the level of global competition.

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Definitions:

Perfect Competitor

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, and no single firm can influence the market price.

Imperfect Competitor

An entity in a market that does not hold enough power to dictate the conditions of the market but can influence the price and output of its goods to some extent.

MRP

Marginal Revenue Product, the additional revenue generated from employing one more unit of a factor of production.

Unit of Input

The smallest measure of an input (like labour, materials) used in the production of goods or services.