Asked by Wanesha Brown on Jul 03, 2024
Verified
If global markets are imperfect, a disproportionate share of profits is likely to end up with shareholders, rather than employees.
Global Markets
The international economic system of trade and investment, where goods, services, and capital flow across borders.
Shareholders
Individuals or entities that own shares in a corporation, giving them partial ownership and rights to dividends or profits.
- Acquire knowledge on how globalization and financialization affect the international distribution of power, income, wealth, and the pace of economic growth.
Verified Answer
SR
Shreya Raghunath7 days ago
Final Answer :
True
Explanation :
This statement is true because in imperfect markets, shareholders have more bargaining power and can negotiate higher profits, while employees may not have as much bargaining power and may receive lower wages or fewer benefits. Therefore, a disproportionate share of profits is likely to go to shareholders rather than employees.
Learning Objectives
- Acquire knowledge on how globalization and financialization affect the international distribution of power, income, wealth, and the pace of economic growth.
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