When large global firms gain disproportionately from the global economy versus smaller firms, it creates a __________.
A) most favored nations status
B) currency risk
C) nontariff barrier
D) globalization gap

Question

Quizplus · Accepted Answer

The term globalization gap refers to the unequal distribution of benefits from globalization, where larger global firms tend to gain more advantages than smaller local firms. Therefore, option D is the correct answer. Option A refers to a trade policy that grants trade advantages to certain countries, option B refers to the risk of fluctuations in exchange rates, and option C refers to trade barriers that are not related to tariffs, such as regulations, quotas, and standards.

When Large Global Firms Gain Disproportionately from the Global Economy