Inequalities That Arise from Globalization, Such as the Successful Penetration

question 3

Multiple Choice

Inequalities that arise from globalization, such as the successful penetration of a U.S. firm in China, suggests that which of the following has most likely happened?

• A) The U.S. firm has transferred its production or service industry to a Chinese supplier.
• B) The U.S. firm has reduced its domestic cost.
• C) White- and blue-collar workers can expect lower incomes.
• D) The U.S. firm is now allowed to market its products and/or services in China.

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Definitions:

Decentralized

A system or organization where decision-making authority is distributed among various levels rather than being concentrated at a single point.

Capitalized

The process of recording an expenditure as an asset on the balance sheet, rather than as an expense on the income statement, allowing for depreciation over time.

Amortized

The process of gradually reducing a debt through regular payments over a period.

Financial Statements

A set of formal records that quantitatively describe the financial activities and position of a business, person, or other entity.