Global Forces Are Expanding Rapidly and Moving into Local Communities

question 55

Multiple Choice

Global forces are expanding rapidly and moving into local communities everywhere. According to the author, people in local communities respond to these global forces by:

• A) working to reshape encounters with these forces to their own benefit.
• B) strengthening and renewing traditional religious practices.
• C) overturning immigration restrictions.
• D) acting with violence and rebellion to destroy these forces.

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Definitions:

Financial Break-even

The point at which total revenue equals total costs and expenses, leaving the company with no net profit or loss.

Variable Cost

Costs that move in correspondence with the quantity of products made or services sold.

Fixed Costs

Expenses that do not vary with production volume or business activity level, such as rent, salaries, and insurance premiums.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the extent to which a firm uses fixed versus variable costs.