ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There has been a greater divergence in world economic systems.
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There has been an increase in global poverty.
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There has been an increasing trend towards regulation of markets.
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There has been as increase in the flow of financial capital.
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Detailed explanation-1: -Finance Across Borders Globalization has affected capital flows, with cross-border equity and bond purchases as well as loans and foreign direct investment. Large corporations, especially multinationals, benefit from greater access to capital.
Detailed explanation-2: -Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges. In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold.
Detailed explanation-3: -The correct answer is D. Financial globalization tends to enhance herd mentality among investors. In herding, the tendency of investors and fund directors rushing into dangerous investments without appropriate knowledge and understanding of the trade-off between risk and return is prevalent.
Detailed explanation-4: -Increased Transport of Goods. One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components. Economic Specialization. Decreased Biodiversity. Increased Awareness. 15-Apr-2021