The Globalization of Production Has Allowed Firms to

question 33

Multiple Choice

The globalization of production has allowed firms to

• A) lower their market share.
• B) lower their cost structure.
• C) respond to individual market segments.
• D) avoid international competition.
• E) all of these choices.

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Definitions:

Public Saving

The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.

Bonds

Bonds are fixed-income securities that represent loans made by an investor to a borrower, typically corporate or governmental, which must be repaid with interest.

Stocks

Financial instruments that signify ownership in a company and represent a claim on part of the company's assets and earnings.

Government Borrowing

The process by which governments finance their expenditure by accruing debt through issuing securities like government bonds and bills.