Globalization Trends - Quick Check

Which of the following is an example of economies of scale?

A business increases its production of widgets, and the cost of producing each widget decreases.

Which of the following correctly describes globalization?

Globalization is the process of integration among individuals, businesses, and governments.

Which of the following explains why many small businesses struggle to compete with larger firms?

Small businesses are unable to specialize to the degree that larger firms are able to.

Which of the following is a concern for national sovereignty that is brought about by globalization trends?

The governments of individual countries may face restrictions in setting their own trade policies.

The United States' Gini coefficient increased from 41.0 in 2013 to 41.4 in 2016. Which of the following correctly interprets this increase?

The increase in the Gini coefficient reflects an increase in income inequality.