Which of the following is a major advantage that localized economies have over more globalized economies?

• A. Lower risk of resource scarcity
• B. Greater responsiveness to local consumer preferences
• C. More uniform regulatory standards across regions
• D. Higher levels of international trade

Answer: (B)

Verified step by step guidance

1. Understand the concept of localized economies: These are economies that focus on serving local markets with goods and services tailored to local needs and preferences.
2. Consider the advantage of 'Lower risk of resource scarcity': While localized economies may rely on local resources, they are not necessarily less at risk of scarcity compared to globalized economies that can source resources internationally.
3. Evaluate 'More uniform regulatory standards across regions': Localized economies typically face varied regulations depending on the region, whereas globalized economies often work towards harmonizing standards internationally.
4. Analyze 'Higher levels of international trade': This is generally a characteristic of globalized economies, not localized ones, as localized economies focus more on local production and consumption.
5. Recognize that 'Greater responsiveness to local consumer preferences' is a key advantage of localized economies because they can adapt products and services quickly to meet the specific tastes and needs of their local customers.