Based on Your Knowledge of Regionalization in Comparison with Globalization

question 21

Multiple Choice

Based on your knowledge of regionalization in comparison with globalization, which of the following scenarios best reflects the true picture of international trade and investment?

• A) a U.K. company has 50 percent of its sales in the United Kingdom, 25 percent in Germany, and 25 percent in France
• B) a Latin American firm has 65 percent of its sales in Canada, 25 percent in the United States, and 10 percent in Latin America
• C) a Mexican corporation has 45 percent of its sales in South America, 35 percent in Canada, and 20 percent in the United States
• D) a U.S. company has 60 percent of its sales in Asia, 30 percent in Mexico, and 10 percent in the United States

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Definitions:

Great Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales, specifically referring to the global economic downturn that began in 2007 and lasted until 2009.

Real GDP

A measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and growth rate.

Gross Investment

The total expenditure on new capital assets plus the replacement of depreciated assets within an economy in a specific time period.

Net Domestic Product

The aggregate worth of every product and service generated inside a nation over a particular timeframe, deducting depreciation.