Which of the Following Is an Observable Feature in the Globalization

question 43

Multiple Choice

Which of the following is an observable feature in the globalization 3.0 stage?

• A) Knowledge flow between the local replicas of the multinational enterprises and their U.S. headquarters is limited.
• B) Only sales and distribution functions of a multinational enterprise are located in a few key countries.
• C) Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world.
• D) Firms have reorganized from a global enterprise with different centers of expertise to a multinational company with self-contained operations in a few selected countries.

---

Definitions:

Marginal Social Cost

The complete expense incurred by society to produce an extra unit of a good or service, encompassing both individual costs and external impacts.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from an additional unit of a good or service.

Socially Optimal

Refers to a situation where goods or services are produced and consumed at a level that maximizes overall social welfare.

Pollution

The contamination of the environment with harmful or poisonous substances, adversely affecting the health of living organisms and ecosystems.