ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

Detailed explanation-2: -International trade is the flow of goods and services between and among different countries of the world. As a result of the many advances in communication, transportation, and technology, international trade has become a vital and growing part of the world economy.

Detailed explanation-3: -The correct option is D. Real flow. Real flow is the flow of goods and services.

Detailed explanation-4: -11. How in the global economy? Goods and services are produced by using land (N), labor (L), capital (K) and entrepreneurial resources (E) and the combination of these resources used are chosen to produce at the lowest possible cost.

Detailed explanation-5: -Goods and services flow from firms to households, in return for money that flows from households to firms. At the same time, households provide resources that firms need to make goods and services, in return for income. The flow of goods and services is always in the opposite direction of the flow of money.