Globalization and Rodrik's Policy Trilemma Quiz
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Questions and Answers

What can undermine the effectiveness of regulations, tax regimes, domestic norms, and institutional practices?

  • Stagnant economic growth in domestic markets
  • Freer movement of goods and capital due to globalization (correct)
  • Increased government intervention in the economy
  • Rising labor costs in developed countries
  • Why are many Italian companies trying to move to the Netherlands?

  • Lower taxation in the Netherlands compared to Italy (correct)
  • Higher labor costs in Italy compared to the Netherlands
  • Stricter environmental laws in Italy compared to the Netherlands
  • Stronger workers' rights in Italy compared to the Netherlands
  • What motivates businesses to seek countries with less taxation and less strict environmental laws?

  • Desire for higher profit margins (correct)
  • Preference for stable political environments
  • Commitment to social responsibility
  • Interest in promoting domestic regulations
  • What impact can globalization have on workers' rights to organize in trade unions?

    <p>Undermining workers' rights in certain countries</p> Signup and view all the answers

    Why may globalization work against domestic elements in certain countries?

    <p>Pushing businesses to seek countries with less taxation and strict regulations</p> Signup and view all the answers

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