If countries' economies are highly integrated, the correlations of their economic growth levels would likely be ____. A firm would benefit ____ by diversifying sales among these countries relative to another set of countries whose economies are less integrated.

Question

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When countries' economies are highly integrated, their economic growth levels tend to move in similar patterns, leading to high and positive correlations. For a firm, diversifying sales among these countries would provide less benefit in terms of risk reduction compared to diversifying among countries with less integrated economies, where the economic growth patterns are more likely to differ.

If Countries' Economies Are Highly Integrated, the Correlations of Their