Due To The Stock Market Booms, The Real GDP Of Marvel Economy Raises By USD800 Billion. Suppose That The MPC (Or Marginal Propensity To Consume) Is 0.75. A. If It Is Assumed That There Are No Crowding-Out Effect And Investment Accelerator In The Economy, What Should The Government Do If It Wants To Avoid The Overheating By Offsetting The Increase In Real Due to the stock market booms, the real GDP of Marvel economy raises by USD800 billion. Suppose that the MPC (or marginal propensity to consume) is 0.75. a. If it is assumed that there are no crowding-out effect and investment accelerator in the economy, what should the government do if it wants to avoid the overheating by offsetting the increase in real GDP? Show also what happen to the Aggregate Demand graphically. b. With the same assumption as at point (a), if the government of Marvel decides to cut its spending, calculate the multiplier number and the required amount of government spending cut to offset the increase in real GDP. c. If crowding-out effect occurs, explain graphically the conditions in point (b). Will the amount of government spending cut in point (b) be still adequate to offset the rise in real GDP? Explain.
Answers
a. To offset the increase in real GDP and avoid overheating, the government should implement contractionary fiscal policy measures.
In this case, since there are no crowding-out effects and investment accelerator, the government can use fiscal policy tools such as reducing government spending or increasing taxes.
Graphically, the impact on the aggregate demand (AD) can be shown as a leftward shift of the AD curve. The initial increase in real GDP due to the stock market booms is represented by an outward shift of the AD curve. To offset this increase, the government needs to reduce aggregate demand. By reducing government spending or increasing taxes, the AD curve will shift to the left, bringing the economy back to its initial equilibrium level of real GDP.
b. The multiplier effect determines the impact of changes in government spending on the overall economy. The formula for the multiplier is given by 1/(1-MPC), where MPC is the marginal propensity to consume. In this case, the MPC is 0.75, so the multiplier would be 1/(1-0.75) = 4.
To offset the increase in real GDP of USD 800 billion, the government needs to implement contractionary fiscal policy by reducing government spending. The required amount of government spending cut can be calculated by dividing the increase in real GDP by the multiplier.
Amount of government spending cut = Increase in real GDP / Multiplier
Amount of government spending cut = USD 800 billion / 4 = USD 200 billion
Therefore, the government would need to cut its spending by USD 200 billion to offset the increase in real GDP.
c. If crowding-out effects occur, it means that increased government spending crowds out private investment in the economy. Graphically, this is represented by a decrease in private investment (I) as government spending (G) increases.
In this scenario, if crowding-out effects occur, the amount of government spending cut calculated in point (b) may not be adequate to offset the rise in real GDP. The decrease in government spending may lead to a decrease in aggregate demand, but the decrease in private investment could partially or fully offset the intended contractionary effect.
In such a case, the required amount of government spending cut to fully offset the rise in real GDP would be higher than the calculated amount in point (b). The exact amount would depend on the magnitude of the crowding-out effect and the responsiveness of private investment to changes in government spending.
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Related Questions
generally, small or token sums awarded to plaintiffs are called:
Answers
Small or token sums awarded to plaintiffs are generally referred to as nominal damages.
Nominal damages are awarded in legal cases when the plaintiff's rights have been violated, but there is little or no actual financial loss or injury suffered. These damages are typically symbolic in nature, representing a recognition of the plaintiff's rights rather than a substantial compensation for damages.
The purpose of awarding nominal damages is to acknowledge that a legal wrong has occurred, even if the harm suffered is minimal. It serves as a way to uphold the principle that individuals should not be allowed to violate the rights of others with impunity.
Nominal damages are often awarded when a plaintiff's legal claim is successful, but they are unable to prove any significant monetary loss or damages. The amount awarded as nominal damages is typically a small or token sum, such as $1, as it is meant to convey symbolic recognition rather than provide substantial financial compensation.
In addition to nominal damages, other types of damages that may be awarded in legal cases include compensatory damages (to compensate for actual losses), punitive damages (to punish the defendant), and liquidated damages (previously agreed upon in a contract). However, when there is no significant financial loss, nominal damages are the appropriate form of compensation.
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As an entrepreneur, jill spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative
duties.
OA.
True
OB.
False
Answers
It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.
Who is an enterprenuer?An entrepreneur is an individual who Identifies a gap or problem and creates a new business around it.
The persons bears most of the risks attached to the business and is more dedicated to the activities, planning and administrative work of the business.
Therefore, It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.
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The table shows the total amount of money carl has saved for 5 consecutive weeks. write an equation that can be used to determine his savings after any number of weeks.
week 1: $50
week 2: $80
week 3: $110
week 4: $140
week 5: $170
Answers
To determine Carl's savings after any number of weeks, we can use the equation y = 30x + 20, where y represents the total amount of money saved and x represents the number of weeks.
This equation assumes that Carl saves $30 per week consistently, starting with an initial amount of $20. We can see that this equation accurately reflects Carl's savings over the five consecutive weeks shown in the table. For example, plugging in x = 3 gives us y = 30(3) + 20 = $110, which matches the amount Carl saved in week 3. This equation can be used to predict Carl's savings for any number of weeks going forward.
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A credit union is a financial institution that:
A. accepts deposits and makes loans without earning profits.
B. offers short-term loans with high interest rates.
C. specializes in financial services for small businesses.
D. uses a person's car as collateral to secure a loan.
Answers
A credit union is a financial institution that accepts deposits and makes loans without earning profits. Thus the correct option is A.
What is a financial institution?A financial institution is structured authority that allows an individual to deposit and withdraw cash and allow them to borrow funds with a fixed interest rate for the purpose of investment.
With the offering of goods at reasonable fees and rates, financial institutions serve their members. This is how the credit union becomes a non-profit organization by converting interest and fees into things it delivers.
Real estate lending is a specialty of savings and loan organizations and savings banks, notably loans for separate homes and other residential properties.
Therefore, option A is appropriate.
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Which of the following should show a profit in order for a financial institution to give a the company a loan
a) income statement
b) rent expense
c) accelerated depreciation
d) accounts receivable
Answers
Answer:
A I think not really sure hope this helps you
Monopolistic competitors in the food industry will often include a recyclable symbol on packaging used for their product as a means to be socially responsible. be environmentally responsible. differentiate their product. be perceived more favorably.
Answers
YES, BECAUSE WHETHER A BUSINESS DECIDES TO PROVIDE A POSITIVE LANDMARK STAMP ON THEIR PRODUCTS AND / OR SERVICES IS THEIR DECISION.
THE ONES THAT DECIDE TO MAKE THE DIFFERENCE ARE OFTEN REMARKABLE FROM THE COMPETITION, THIS OTHER ECONOMIC GROUP THAT DID NOT HAD THE INITIATIVE TO INNOVATE FOR A BETTER EXPERIENCE.
What are work-study programs? PLEASE HELP
A. Businesses where students earn college credit for working
B. Jobs that allow students to study at the workplace
C. Part-time on-campus jobs based on financial need
D. Career opportunities promised for immediately after graduation.
Answers
Answer:
C
Explanation:
The answer should be Part-time on-campus jobs based on financial need
Identify and explain two reasons why effective communication within a business is important to the management
Answers
Answer:
Why effective communication within a business is important to the management?
In order to attain your objectives, it is critical to communicate well during negotiations. Within the business, communication is also crucial. Effective communication can aid in the development of a positive working connection between you and your employees, which can enhance morale and productivity.
Explanation:
It Builds and Maintains Relationships: Positive interactions with people help to form and maintain relationships. Communication will be crucial in this process; without it, it would be difficult to build and maintain fruitful partnerships. Communication is an important component of any relationship. Two people cannot be friends until they begin to communicate with one another. A supervisor-underling relationship is similar, in that the boss should be able to explain how to do his job to a new office worker.
It Facilitates Innovation: Collaboration and innovation inside the unit or organisation can be improved when employees feel free to express themselves. Employees, for example, will be able to share their ideas on how to improve a company process. Furthermore, if employees are unable to communicate their ideas owing to a lack of communication skills, the idea is unlikely to be fully implemented.
A retailer buys books from publishers for $6 each and prices them for sale to consumers at $9. What percentage markup for these books?
Answers
Answer:
50% is the correct answer
Explanation:
Answer:50
Explanation:
just took the test
What are the costs of “freebie” items?
Answers
Answer:
The costs of a “freebie” item includes resources to make, a person's labor, and the cost to the store to offer it to us as free.
Explanation:
Answer:theres no cost its a freebie
Explanation:
Imagine you are an economic adviser to the Commonwealth Government. The Prime Minister wants to increase spending on public transport in major cities, but does not want to raise taxes. Identify alternative sources of revenue for the government to fund its new initiatives.
Answers
Answer: A combination of 1) Increased public transportation fees, 2) raise the gasoline tax, 3) increase or institute highway tolls, or 4) reduce the road construction budget and use that money for public transportation.
Explanation:
Actions 2-4 would provide incentives to use public transportation.
Sales in 2015 1400000 at December 31,2015, before adjusting entire account receivable 250000debit allowance for doubt full account 2400 credit 2% net sales will prove uncollectible, prepare the December 31,2015, journal entry to record bad debt expense.
Answers
Answer:
Dr Bad Debt Expense $28,000
Cr Allowance for Doubtful Accounts $28,000
Explanation:
Preparation of the December 31,2015, journal entry to record bad debt expense.
Based on the information given the December 31,2015, journal entry to record bad debt expense will be :
Dr Bad Debt Expense $28,000
Cr Allowance for Doubtful Accounts $28,000
($1,400,000 *2%)
(To record bad debt expense)
A firm has issued cumulative preferred stock with a $100 par value and a 10 percent annual dividend. For the past three years, the board of directors has decided not to pay a dividend. At the end of the current year, the preferred stockholders must be paid ________ prior to paying the common stockholders.
Answers
Answer:
$30/share
Explanation:
Calculation to determine the amount the preferred stockholders must be paid
First step is to calculate per year dividend using this formula
Per year dividend = Stock value × Dividend payment rate
Let plug in the formula
Per year dividend = $100 × 10%
Per year dividend = $10
Second step is to calculate the Total unpaid dividend using this formula
Total unpaid dividend for 2 years = Per year dividend × 2 year
Let plug in the formula
Total unpaid dividend for 2 years = $10× 2years
Total unpaid dividend for 2 years = $20
Now let calculate the Cumulative Preferred Dividend
Using this formula
Cumulative Preferred Dividend = Current Year Dividend + Total unpaid dividend for 2 years
Let plug in the formula
Cumulative Preferred Dividend = $10 + $20
Cumulative Preferred Dividend = $30
Therefore At the end of the current year, the preferred stockholders must be paid $30/share prior to paying the common stockholders.
Look for _____ in research information showing preferential treatment or consideration regardless of legitimate reasoning.
credibility
relevance
bias
additional sources
Answers
Answer:
bias
Explanation:
bias is the true anwer
Asking a candidate during an interview to indicate how they have responded in the past to an irate customer is an example of which assessment method?
Answers
Asking a candidate during an interview to indicate how they have responded in the past to an irate customer is an example of a situational interview.
We regret to inform you that (organization) is not considering your application for this position. Your qualifications are excellent, but the selection process is very competitive and we have decided to hire candidates whose qualifications better suit our needs at this time.
Because structured interviews are more efficient than semi-structured and structured interviews in predicting job performance. Meta-analysis studies show that structured interviews are up to twice as effective at predicting job performance as situational interviews.
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What is your opinion on the saying "If it doesn't challenge you, it doesn't change you"?
Answers
Answer:
I believe this saying refers to how we need challenges in our lives so that we can experience failure and learn from it.
The Wood Shop generates s97 in sales for every SI invested in total assets. which one of the following ratios would reflect this relationship? A. Receivables tumover B. Equity multiplier C. Profit margin D. Retum on assets E. Total asset turnover
Answers
Option (e), For every $1 invested in total assets, The Wood Shop generates $0.97 in sales. This link would be shown in total asset turnover.
A turnover of all assets is what?Asset turnover is calculated by dividing total sales or revenue by average assets. This measure allows investors to assess the efficiency with which a company is utilising its resources to boost sales. The asset turnover ratio is a metric used by investors to compare companies within the same sector or group.
Only businesses in the same industry should have their ratios compared because asset turnover ratios vary across various industrial sectors. Businesses in the retail or service industries, for instance, typically have minimal asset bases and high sales volumes. The average asset turnover ratio rises as a result. Companies in sectors like manufacturing or utilities, however, usually have large asset bases, which is linked to lower rates of asset turnover.
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As children, we just have one or two things, but as adults, we have a complete bag of balls that we are attempting to maintain in the aif. Consider all the roles you may be playingwife, mother, daughter, employee, student, military spouse fwhich, while technically a "wife" role, has its own unique issues, so I think we can call it out individuallyl. PTA member, church conmittee chair, blopeer, bock dub member, etc. In addition, the upcoming holiday saason will make you further busier. Last year, during the fall I was attending classes and learning a new job which was very complex. Being a full-time student along with working a full-time job can be chatlenging. Being able to balance work and school can be challenging because i feel like l've been prioritizing work above study. I need to earn money for school, so I must work. For scholarships and decent grades, I still need to continue my education. College is largely dependent on finances. You cannot obtain an education without money. In my case, not working will prevent me from having money or a good education. But I have found that being organized can make it a bit better. However, when learning a new job that is complex you can tend to get overwhelmed. Which happened to me, I felt like every time I completed an assignment at school that was difficult and time-consuming. I was faced with even a more difficult task at work. At times I felt like giving up and hiding trom the world and my responsibilities. The painful reminders that there Through completing the Business Writing Assignment, you constructed a workplace document and engaged in the writing process by taking your instructor's feedback and employing it to improve your assignment. It is important to take time to reflect on your own writing process to hone the process and use it to empower you to improve your process over time. Locate your Business Writing Assignment and evaluate what you wrote. Since this is a reflection, you can include your emotions and reactions, and use the first person ("I′′ ) to write your reflection. In a 550-word reflective response, complete the following elements:
- Discuss your experience writing your assignment, reviewing your instructor's initial feedback, and revising your response.
- Explain some of your writing process and what you thought worked well. - Also, detail some of what in your process you will look to improve for next time.
Answers
Writing the Business Writing Assignment was a challenging yet valuable experience. Receiving and implementing feedback from my instructor helped me improve my work, and I realized the importance of reflection and continuous improvement in my writing process.
Writing the Business Writing Assignment was a journey that involved multiple stages. Initially, I invested time and effort into constructing a workplace document, aiming to meet the assignment requirements. However, it was the process of reviewing my instructor's initial feedback that truly enhanced my understanding and propelled me towards improvement.
By carefully considering the feedback, I gained valuable insights into the strengths and weaknesses of my writing. It allowed me to identify areas that required refinement, such as clarity, organization, or the inclusion of specific details. Armed with this knowledge, I embarked on the revision phase, diligently incorporating the suggestions and making necessary adjustments.
Throughout the writing process, I found certain aspects of my approach to be effective. For instance, I appreciated the value of planning and outlining before diving into the actual writing. This allowed me to structure my ideas and ensure a logical flow in the document. Additionally, seeking feedback from peers or colleagues provided valuable perspectives and helped me fine-tune my work.
However, I recognize the need for improvement in certain areas of my writing process. One aspect I aim to enhance is time management. As the assignment coincided with a busy period in my life, I realized the importance of allocating dedicated time for writing, revising, and incorporating feedback. Improving this aspect will ensure a more balanced and efficient writing process in the future.
In conclusion, the experience of writing the Business Writing Assignment, coupled with the invaluable feedback from my instructor, taught me the significance of reflection and continuous improvement. Through careful analysis of my writing process, I identified strengths to build upon and areas to refine, emphasizing the importance of time management and seeking constructive feedback for future assignments.
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what is one way to quantify the value of a good or service?
Answers
One way to quantify the value of a good or service is by determining its price in the market.
Price is a common indicator used to assess the value of a product or service because it reflects the amount that consumers are willing to pay for it. The price is influenced by various factors, including supply and demand dynamics, production costs, competition, perceived quality, and brand reputation.
In a competitive market, the price is typically determined by the interaction of supply and demand forces. If the demand for a good or service is high relative to its supply, the price tends to increase, indicating that consumers perceive a higher value for it. Conversely, if the supply exceeds the demand, the price may decrease, suggesting a lower perceived value.
However, it is important to note that price alone does not capture the entire value of a good or service. Other factors, such as quality, functionality, convenience, and customer experience, also contribute to its overall value.
Therefore, considering a combination of price and these additional factors provides a more comprehensive understanding of the value proposition of a good or service.
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1. In the IS-LM model, the impact of an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes a(n) in money . increase; supply O increase; demand O decrease; supply O decrease; demand
Answers
In the IS-LM model, an increase in government purchases in the goods market has ramifications in the money market. This is because the increase in income causes an increase in money demand.
As a result, the interest rate will rise to equate money demand with the fixed money supply. This increase in interest rates will lead to a decrease in private investment spending, which will cause a decrease in output and income. Therefore, the impact of government purchases in the goods market has both direct and indirect effects on the economy.
In the IS-LM model, an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes an increase in money demand.
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Steve Marks owes $20,000 in medical bills, $300 to the public utility, $400 on a dental bill due this month, $35,000 on a 10 year student loan, and $120,000 on a 30 year home mortgage. What is Steve's total for current liabilities
Answers
Answer:
US$ 175.700
Explanation:
Based on the given information, the total of Steve Marks's current liabilities is 20,700.
What is Current liability?The simple payments that are outstanding within a year or during the course of a typical business cycle are known as current liabilities. These are the sums that each person or business must pay each year.
The formula for calculating the current liability is
Total current liabilities=Medical bills+Public utility+dental Bill
As given
Medical bills=$20,000
Public utility=$300
Dental bill=$400
In the given case, the student loan and home mortgage are excluded as they are not considered as current liabilities of the business payable in a year.
Current liabilities=$20,000+$400+$300
Current liabilities=$20,700
In conclusion, Steve Marks's current liabilities are $ 20,700.
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Consider the following statements:
I. An increase in the rate of income tax decreases the opportunity cost of being unemployed.
II. The introduction of e-learning, which enables students to earn a degree by watching lectures at their own pace and from any location, decreases the opportunity cost of earning a college
Answers
An increase in income tax rates increases the opportunity cost of being unemployed, the introduction of e-learning can decrease the opportunity cost of earning a college degree by providing flexibility and reducing associated expenses.
I. The statement that an increase in the rate of income tax decreases the opportunity cost of being unemployed is not accurate. Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In this case, the opportunity cost of being unemployed is typically measured in terms of potential income that could have been earned by working.
When income tax rates increase, it generally implies that individuals have to pay a higher percentage of their income as taxes. This, in turn, reduces the net income they receive from employment. As a result, the opportunity cost of being unemployed actually increases because the potential income forgone becomes higher relative to the after-tax income.
II. The introduction of e-learning, which allows students to earn a degree by watching lectures at their own pace and from any location, can indeed decrease the opportunity cost of earning a college degree. Traditional on-campus education often requires students to attend classes at specific times and locations, which can limit their flexibility and create additional costs such as commuting expenses.
With e-learning, students can have more control over their learning schedule and location, allowing them to balance their studies with other responsibilities like work or family commitments. This flexibility reduces the opportunity cost of earning a degree because individuals can pursue education while still engaging in other activities or earning income.
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your team asks you why you assess consistency, distinctiveness, and consensus of their individual behaviors at every performance appraisal. which explanation do you give them?
Answers
The explanation I give them will be that as their team's performance evaluator, I assess consistency, distinctiveness, and consensus of individual behaviors during each performance appraisal to ensure a comprehensive and fair evaluation of your performance.
Consistency refers to the extent to which an individual's behavior is stable across different situations and over time. Assessing consistency helps me understand whether an employee is reliably meeting their goals and responsibilities. A high level of consistency indicates that the individual's performance can be trusted and relied upon in various contexts.
Distinctiveness, on the other hand, highlights the unique strengths and qualities of each team member. By recognizing and valuing the distinct skills and characteristics that each of you brings to the team, I can foster an environment where everyone's contributions are acknowledged and appreciated. This also enables me to identify areas for improvement and provide tailored feedback for your professional development.
Lastly, consensus refers to the degree of agreement among team members and other stakeholders regarding an individual's performance. Considering consensus during performance appraisal ensures that my evaluation is not solely based on my personal perspective, but also incorporates the opinions of others who have worked closely with the individual. This approach provides a more balanced and objective assessment of your performance.
By considering these three factors, I aim to provide each team member with a well-rounded, accurate, and unbiased evaluation that not only recognizes your current achievements but also supports your continued growth and development within the organization.
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Today’s savings accounts do not offer interest rates much higher than 1%. How does this impact the power of compounding?
Answers
Someone Help This Is Due today !!!!
Match the Professionalism term with its meaning
1.
Accountability
2.
Integrity
3.
Punctuality
4.
Productivity
5.
Initiative
a.
doing your job as efficiently and effectively as possible
b.
doing the right thing, even when no one is watching
c.
being responsible for your actions and words
d.
being on time
e.
to take charge or do things without being told
Answers
Answer:
Number 1
Explanation:
Number 1 is correct
If the firm is operating at full capacity, should fixed assets be projected as a percent of sales?
Answers
When a firm is operating at full capacity, projecting fixed assets as a percent of sales may not be appropriate. Fixed assets are the long-term assets that a company uses to generate revenue, such as buildings, machinery, and equipment.
When a company is operating at full capacity, it means that it is utilizing all of its available resources to their maximum potential. In this scenario, the firm is already using its fixed assets to their fullest extent to generate sales. Therefore, projecting fixed assets as a percent of sales would not provide any meaningful information about the company's future needs or growth potential.
Instead, when a firm is operating at full capacity, it may be more relevant to focus on other factors such as improving operational efficiency, optimizing processes, or expanding the product line to increase sales. These strategies can help the firm increase revenue without the need for additional fixed assets. Instead, focusing on improving efficiency and exploring other strategies to increase sales can be more relevant in such situations.
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Which promotional tool can be more effective when you are selling a complex product?
A. advertising
B. sales promotion
C. personal selling
D. public relations
Answers
Answer:
Personal selling
Explanation:
Personal selling is more flexible than other promotional tools such as advertising and sales promotion.
You've observed the following returns on Pine Computer's stock over the past five years: 16 percent, -16 percent, 18 percent, 28 percent, and 10 percent. a. What was the arithmetic average return on the company's stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b-1. What was the variance of the company's returns over this period? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What was the standard deviation of the company's returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Average return % b-1. Variance b-2. Standard deviation %
Answers
The arithmetic average return on Pine Computer's stock over the five-year period is 11.2%. The variance of the returns is 139.36, and the standard deviation is 11.8%.
a. The arithmetic average return on Pine Computer's stock over the five-year period can be calculated by summing the individual returns and dividing by the number of observations. In this case, the arithmetic average return is (16 - 16 + 18 + 28 + 10) / 5 = 11.2 percent.
b-1. The variance of the company's returns measures the dispersion or variability of the returns from the average return. To calculate the variance, we need to find the squared difference between each return and the average return, sum up these squared differences, and divide by the number of observations.
Using the average return calculated in part a, the variance can be calculated as follows:
Variance = [(16 - 11.2)^2 + (-16 - 11.2)^2 + (18 - 11.2)^2 + (28 - 11.2)^2 + (10 - 11.2)^2] / 5 = 139.36.
b-2. The standard deviation of the company's returns is the square root of the variance. It measures the dispersion of returns around the average return and provides a measure of the risk associated with the stock.
Using the variance calculated in part b-1, the standard deviation can be calculated as follows:
Standard Deviation = √139.36 = 11.8 percent.
In summary, the arithmetic average return on Pine Computer's stock over the five-year period is 11.2 percent. The variance of the returns is 139.36, and the standard deviation is 11.8 percent. These measures provide insights into the average performance and the variability of returns for Pine Computer's stock.
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what is the meaning of market variable in maketing
Answers
Answer:
market is for people low budget and the markering is people qho want earn money in online
**20 POINTS
What is one major drawback of globalization?
a) inflation rates have declined significantly because of increased global trade
b) businesses have access to fewer markets when selling their products
c) environmental regulations have gotten in the way of economic growth
d) increased competition can harm businesses in developing countries
Answers
Answer:
d) increased competition can harm businesses in developing countries
Explanation:
Globalization has increased interconnection and interdependence among world economies. International trade has increased due to the relaxation of border restrictions. Due to globalization, many countries, including the developing ones, have liberalized their economies.
For a developing economy, international trade can cause unfair competition to their young industries. Countries with developed economies can produced goods and services in large quantities and with more efficiency. When such goods get to the developing countries, they will be of a higher quality and a lower price. Producers in developing countries will not be able to compete with such imports, which impedes their growth.