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Which statements best explain how globalization offers an advantage to businesses? Choose four answers.
Businesses can take advantage of favorable laws to make products cheaply.
Businesses can take advantage of favorable taxes to make products cheaply.
Businesses can take advantage of new forms of technology to make products cheaply.
Businesses can take advantage of new forms of democracy to make products cheaply.
Businesses can take advantage of faster technology to make products faster.
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Selected (true):
- Businesses can take advantage of favorable laws to make products cheaply.
- Businesses can take advantage of favorable taxes to make products cheaply.
- Businesses can take advantage of new forms of technology to make products cheaply.
- Businesses can take advantage of faster technology to make products faster.
Why: Globalization enables firms to relocate or outsource to jurisdictions with more business‑friendly laws and lower taxes (reducing costs), and it spreads new and faster technologies that improve production efficiency and speed. The statement about "new forms of democracy" is not a typical mechanism by which globalization directly reduces production costs, so it’s the one to exclude.
- Businesses can take advantage of favorable laws to make products cheaply.
- Businesses can take advantage of favorable taxes to make products cheaply.
- Businesses can take advantage of new forms of technology to make products cheaply.
- Businesses can take advantage of faster technology to make products faster.
Why: Globalization enables firms to relocate or outsource to jurisdictions with more business‑friendly laws and lower taxes (reducing costs), and it spreads new and faster technologies that improve production efficiency and speed. The statement about "new forms of democracy" is not a typical mechanism by which globalization directly reduces production costs, so it’s the one to exclude.
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