What is meant by the term global economy? How will it positively and negatively affect the United States?
What will be an ideal response?
The global economy refers to the growing tendency of the economies of the world to interact with one another as one market instead of many national markets.
This positively affects the United States by providing additional markets for U.S. products, which will mean domestic growth. In addition, foreign firms are building plants in the United States, revitalizing parts of industrial America. Foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services). Companies based overseas provide jobs for approximately 10% of the U.S. workforce.
It negatively affects the United States because economic problems in other parts of the world are more likely to affect the U.S. economy. There are risks associated with financially intertwined markets. Another negative effect is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs, particularly in manufacturing.
You might also like to view...
Most merchandisers receive checks and currency from customers in two ways: (1) cash received over the counter from cash sales and (2) cash received in the mail from credit sales
a. True b. False Indicate whether the statement is true or false
Which stage of the consulting process describes when the consultant and client come to an agreement on what work will be accomplished?
a. Entry b. Contracting c. Diagnosis and feedback d. Evaluation and exit
A high inventory turnover ratio indicates that ______.
A. the firm is converting its inventory to profits faster B. the potential for product obsolescence is high C. inventory is not being replenished D. the potential for product theft and damage is high
Differentiate between a registered security and a bearer security
What will be an ideal response?