If countries are highly influential upon each other, 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 that were not influential upon each other.
A) high and positive; more
B) close to zero; more
C) high and positive; less
D) close to zero; less

Question

Quizplus · Accepted Answer

If countries are highly influential upon each other, their economic growth levels would likely be highly and positively correlated. A firm would benefit less by diversifying sales among these countries because their economies would move together, reducing the diversification benefit.

If Countries Are Highly Influential Upon Each Other, the Correlations