The First Stage of Global Development, According to Friedman, Was

question 34

Multiple Choice

The first stage of global development, according to Friedman, was characterized by:

• A)the growth of European mercantile stock companies.
• B)the ascension of multinational companies.
• C)advances in global electronic interconnectivity.
• D)the introduction of modern communications and cheaper shipping costs.
• E)how much industrial power countries could produce and apply.

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Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business or investment.

Cash Expenditures

Funds spent by a company or individual in cash form for operating activities, investments, and financing.

Explicit Costs

Direct, out-of-pocket payments made by firms for the use of inputs and resources in the production process.

Implicit Costs

Costs that represent the opportunity cost of using resources owned by the firm for its own production instead of earning income elsewhere.