Which statement is a pro of globalization?

• A. Increases profits by having more people to sell to
• B. Increases tariffs and trade barriers
• C. Reduces competition
• D. Lowers middle-class growth

Answer: (A)

Globalization expands the market for a business by giving it more potential customers worldwide. When you can sell to people in many countries, sales can grow beyond what a single domestic market would allow. This often lets a company spread its fixed costs over more units and achieve economies of scale, which can raise overall profits. The other statements point to barriers or negative effects rather than benefits: increasing tariffs and trade barriers would hinder global trade; reducing competition isn’t typically a consequence that globalization creates; and lowering middle-class growth describes a negative social outcome, not a profit-based advantage.