Globalization and Transnational Processes (9B) Practice Test

A regional bloc introduced a common external tariff and streamlined customs procedures among member states. Small firms reported easier access to intermediate goods from neighboring countries, and cross-border commuting increased in border towns. However, some domestic producers complained about stronger competition from firms within the bloc. Central concept: regional economic integration and market expansion. Based on the scenario, which conclusion is most consistent with the effects of transnational processes?

A city introduced a special economic zone (SEZ) to attract foreign investment. Over 6 years, employment increased in export manufacturing, but local tax revenue did not rise proportionally due to incentives offered to firms. Public clinics reported higher demand, and waiting times increased, especially among migrant workers living near factories. Central concept: foreign direct investment and uneven local public capacity. Which statement best reflects the impact of globalization on local institutions in this SEZ context?