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:

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Profit-maximizing

The process or strategy aiming to achieve the highest possible profit from business operations, often involving adjusting prices, output, and costs.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are subtracted.

Output

The amount of something produced by a person, machine, or industry.