Why Do Many People Fear Trade and Globalization

question 102

Multiple Choice

Why do many people fear trade and globalization?

• A) Many fear that free trade and globalization lead to increased productivity.
• B) Many fear that an open economy spurs innovations with fresh ideas from abroad.
• C) Many fear that trade and globalization will lead to massive job losses.
• D) Many fear that trade and globalization will increase per capita income.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionally weighted, assessing investment risk and strategy.

Capital Structure

The particular combination of debt and equity used by a firm to finance its overall operations and growth.

Break Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.