Which cost is created by the other two costs of globalization?

A. Unequal Accrual of Economic and Financial Gains.
B. Lower Environmental, Social, and Governance Standards.
C. Political Consequences.

Correct Answer: C

A. While the aggregate wealth is increased, globalization leads to decisions that generate gains for certain individuals and countries and losses for others.

B. Lower barriers to the mobility of capital and labor allow companies to move to low-cost jurisdictions. However, the competition to attract companies and capital can motivate countries to lower their environmental protection, labor standards, and social benefits.

C. This can be caused by the above 2 costs, as some countries may fear globalization and are less willing to engage in cooperative international activities.