8
QuizMultiple Choice

The Global Economy — Test

Question 8 • Economics and Personal Finance

Which statements best explain how globalization offers an advantage to businesses? Choose four correct answers.

Answer
A
Businesses can take advantage of faster technology to make products faster.
B
Businesses can take advantage of favorable taxes to make products cheaply.
C
Businesses can take advantage of new forms of democracy to make products cheaply.
D
Businesses can take advantage of favorable laws to make products cheaply.
E
Businesses can take advantage of new forms of technology to make products cheaply.

Explanation

Globalization lets businesses operate across borders and benefit from differences in laws and taxes, which can lower production costs. It also gives businesses access to faster and newer technologies that can speed up production or make it cheaper. Favorable laws, faster technology, new technology, and favorable taxes are all advantages; new forms of democracy are not a direct production advantage.

AI-written and checked against the verified answer.

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