Describe the Process of Globalization and Explain the Two Main

question 92

Essay

Describe the process of globalization and explain the two main forces driving globalization.

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Competitive Firm

A company that operates in a market with many sellers, where it has little to no control over the price of its product.

Perfectly Elastic

Perfectly Elastic describes a situation in which the quantity demanded or supplied responds infinitely or extremely sensitively to a change in price.