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What effect has globalization had on the ability of firms to specialize? How has this affected the competitive process?
How do American consumers most benefit from globalization?
1. reducing costs for labor and resources lowers the prices of goods.
2. creating industries in less-developed countries increases competition.
3. building factories in foreign countries shifts some jobs overseas.
4. competing in a global marketplace forces smaller companies to close?
Globalization and global trade have led to increased competition in world markets and increased efficient allocation of scarce resources.
Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures?
If yes, how (explain using economic concepts and terms how it is occurring)?