Which of the Following Is NOT True Regarding Globalization

question 16

Multiple Choice

Which of the following is NOT true regarding globalization?

• A) It guarantees that quality of life for all people will increase.
• B) It creates winners and losers.
• C) It has the potential to increase the quality of life for people.
• D) Some multinational companies will utilize globalization may try to pay substandard wages to the workers they employ in developing countries.
• E) Export barriers may need to be imposed by the WTO to help regulate the actions of multinational companies.

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Definitions:

Equity Method

A method of accounting for investments in which the investment is initially recorded at cost and subsequently adjusted for the investor’s share of the investee’s net income or losses and dividends received.

Significant Influence

It refers to the power to participate in the financial and operating policy decisions of an investee but not control those policies.

Trading Security

A financial asset that is bought and sold with the intention of generating profits from short-term fluctuations in its price.

Retained Earnings

Profits that a company has kept or retained rather than distributing to shareholders as dividends.