What Is the Consequence of Globalization for National Economies

question 51

Multiple Choice

What is the consequence of globalization for national economies?

• A)They are able to specialize in the production of a smaller range of products.
• B)Their commercial wealth can be much more efficiently taxed.
• C)They lose all distinctive regional variation.
• D)They are much more vulnerable to worldwide economic panics.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable.

Fixed Costs

Fixed overheads that are unaffected by changes in production or sales volume, like rental costs, payroll, and insurance charges.

Strategic Option

Refers to choices available to a company or an investor that could affect key business or investment strategies beneficially.

Soft Rationing

The situation where a company limits the amount of financial resources available for certain projects based on internal policy decisions.