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.

Question

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If countries are highly influential upon each other, their economic growth levels would likely have high and positive correlations. A firm would benefit less by diversifying sales among these countries because their economies would tend to move together, reducing the diversification benefit.

If Countries Are Highly Influential Upon Each Other, the Correlations