Globalisation Results in a Greater Degree of ________ Across Markets

question 44

Multiple Choice

Globalisation results in a greater degree of ________ across markets and __________ in the world economy than would be present otherwise.

• A)diversification;homogeneity
• B)diversity;complexity
• C)integration;interdependency
• D)isolation;independence

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Definitions:

Interest Rate Differential

The difference in interest rates between two distinct economic or financial instruments.

Exchange Rate

The price of one currency in terms of another, crucial in international finance as it determines how much one currency is worth in another.

Political Risk

The risk of losing money due to changes in a country's political environment or policy.

Foreign Operations

Business activities and transactions conducted in countries other than the company's home country.