The trend toward unification and socialization of the global community is illustrated by which of the following?
A) Progressive increases in barriers to foreign investment by most governments.
B) Preferential trading arrangements that group several nations into a single market.
C) Increased public ownership of much of the industry in formerly communist nations.
D) Expanded barriers to trade by most governments.
E) Restriction of access by foreign firms to domestic economies.

Question

Quizplus · Accepted Answer

There is a trend toward the unification and socialization of the global community. Preferential trading arrangements that group several nations into a single market, such as the North American Free Trade Agreement and the European Union, have presented firms with significant marketing opportunities. Many firms have moved swiftly to gain access to the combined markets of these trading partners by either exporting to or producing in the area. Two other aspects of this trend are contributing to the globalization of business operations: (1) the progressive reduction of barriers to trade and foreign investment by most governments, which is hastening the opening of new markets by international firms that are both exporting to them and building production facilities in them, and (2) the privatization of much of the industry in formerly communist nations and the opening of their economies to global competition.

The Trend Toward Unification and Socialization of the Global Community