In the context of economic interdependence, identify a true statement about globalization.
A) Companies may decide to expand globally as a strategy to reduce costs by finding cheaper labor in developing countries.
B) France, Germany, and Switzerland top the list for hosting the most multinational enterprises.
C) Most multinational enterprises have ensured that their foreign factories adhere to high human resource standards.
D) Countries such as Cuba and Zimbabwe offer continuity and consistency for global firms because of the countries' stable legal and political systems.

Question

Quizplus · Accepted Answer

Globalization has led to companies seeking cheaper labor in developing countries as a strategy to reduce costs. This has led to the rise of multinational enterprises setting up factories and offices in developing countries to take advantage of low labor costs.

In the Context of Economic Interdependence, Identify a True Statement