Geographical Boundaries and Distances Have Become Less of a Constraint

question 65

Multiple Choice

Geographical boundaries and distances have become less of a constraint in designing strategies for the global market because of:

• A)a stable demand structure in the international marketplace.
• B)a growing travel industry.
• C)the revived role of the United Nations.
• D)the explosion of information technology that has changed global competition.
• E)the expanding role of government in international trade.

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Definitions:

Deadweight Loss

The decrease in economic effectiveness when a product or service fails to achieve or cannot attain its balance point.

Cheesecake

A sweet dessert consisting of one or more layers, primarily a thick layer of cream cheese and egg mixture set atop a base made from crushed cookies, crackers, or sponge cake.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability where there is no excess supply or demand.

Consumption Tax

A tax on the spending on goods and services purchased by consumers.