Which of the following is the most effective way for businesses to take advantage of globalization?

• A. Reducing investment in technology to minimize costs
• B. Focusing solely on domestic production and ignoring global trends
• C. Expanding into international markets to access new customers and resources
• D. Limiting collaboration with foreign firms to avoid competition

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of globalization in microeconomics, which refers to the increasing integration of markets, firms, and economies across the world, allowing businesses to operate beyond their domestic borders.
2. Step 2: Analyze each option by considering how it aligns with the benefits of globalization, such as access to new markets, resources, technology, and collaboration opportunities.
3. Step 3: Recognize that reducing investment in technology contradicts the goal of leveraging globalization, as technology often enables firms to compete globally and improve efficiency.
4. Step 4: Understand that focusing solely on domestic production ignores the potential gains from global market expansion and resource access, limiting growth opportunities.
5. Step 5: Identify that expanding into international markets allows businesses to access new customers and resources, which is a direct way to benefit from globalization, while limiting collaboration with foreign firms reduces potential competitive advantages.