Which statement describes a resource-related pro of globalization?

Which statement describes a resource-related pro of globalization?

• A. It reduces costs by limiting foreign resource use.
• B. It increases barriers to resource access.
• C. It allows using foreign resources which can be cheaper or better.
• D. It guarantees domestic supply stability.

Answer: (C)

Globalization expands how firms obtain inputs by opening access to resources from around the world. The best statement captures the practical benefit that comes from this: using foreign resources that can be cheaper or better. When companies can source inputs from abroad, they may find lower costs, higher quality, or specialized materials and skills not available domestically. This flexibility can improve efficiency, product quality, and competitive advantage. The other ideas don’t fit as well because limiting foreign resource use runs opposite globalization’s effect of widening access; increasing barriers to resource access contradicts the openness globalization promotes; and while diversification of supply can help, globalization does not guarantee domestic supply stability.

Globalization expands how firms obtain inputs by opening access to resources from around the world. The best statement captures the practical benefit that comes from this: using foreign resources that can be cheaper or better. When companies can source inputs from abroad, they may find lower costs, higher quality, or specialized materials and skills not available domestically. This flexibility can improve efficiency, product quality, and competitive advantage.

The other ideas don’t fit as well because limiting foreign resource use runs opposite globalization’s effect of widening access; increasing barriers to resource access contradicts the openness globalization promotes; and while diversification of supply can help, globalization does not guarantee domestic supply stability.