Final answer:
A small business may hesitate to expand globally due to a concern over volatile currency exchange rates, limited resources, and heavy competition, which are amplified by the challenges of an interconnected global economy.
Step-by-step explanation:
A small business may hesitate to expand globally due to a combination of factors. These include concerns about currency exchange rates which can be volatile and affect profitability, limited resources which may restrain their ability to scale and compete effectively, and the presence of established competition which can be formidable in global markets. Smaller economies are particularly susceptible to fluctuations in international capital movements and goods, which can lead to unstable inflation rates and influence trade balances. Additionally, firms of all sizes are navigating an ever-increasing level of competition due to globalization and advancements in technology. For smaller entities, these factors collectively pose a significant hurdle to global expansion.