Which are the three impacts of Globalization? (Choose three)

Question

Options

• ARationalized manufacturing
• BManaging risk across currencies
• CWorldwide purchase
• DSecurity concern
• ETheft

• A
  91% (40)
• D
  2% (1)
• E
  7% (3)

Explanation

Globalization is the process of increasing economic, political, and cultural integration and interdependence across the world. Some of the impacts of globalization are: Rationalized manufacturing: Globalization enables firms to produce goods and services in different locations according to their comparative advantages, such as lower costs, higher quality, or better access to markets. This leads to more efficient and competitive production, as well as increased specialization and trade. Managing risk across currencies: Globalization exposes firms and individuals to fluctuations in exchange rates, which affect the value of their assets, liabilities, and incomes. To manage this risk, they may use various financial instruments, such as hedging, derivatives, or currency swaps, to reduce their exposure or benefit from favorable movements. Worldwide purchase: Globalization expands the range and availability of goods and services that consumers can purchase from different countries and regions. This increases consumer choice, lowers prices, and improves quality and variety. It also creates opportunities for cross-cultural learning and exchange.

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