Many Consumers Experience the Benefits of Globalization, Including Lower Prices

question 32

Multiple Choice

Many consumers experience the benefits of globalization, including lower prices and access to exotic products; however, others are concerned with the massive expansion of companies such as Walmart. Why are these consumers concerned?

• A)because globalization will inevitably lead to inflation
• B)because globalization will cause living standards to increase at a slower rate
• C)because globalization causes some job loss as production shifts abroad
• D)because globalization has increased global wages

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning.

Variable Costs

Expenses that change in proportion to the activity of a business.

Fixed Overheads

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance costs.

Estimated Total Cost

An approximation of the total cost associated with a project or production, including all relevant expenses.