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Question 37: According to the third paragraph, what is a potential drawback for firms and states when they attempt to insulate themselves fr...

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Question 37: According to the third paragraph, what is a potential drawback for firms and states when they attempt to insulate themselves from global risks?

A. They accidentally achieve duplication, which is the exact same thing as diversification.

B. They use industrial policy to ensure that their language is always about separation.

C. They may lose the ability to adapt quickly in exchange for a higher financial burden.

D. They focus too much on resilience and strategic autonomy, which improves their flexibility.

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