ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The use of high taxes for imports and exports
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Improvements in technology such as the Internet
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The creation of one form of currency (money) used to trade
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The success of the Communist governments in guiding trade
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Detailed explanation-1: -Global economy can be defined as the sum of activities that take place both within a country and between different countries. Each country is a separate unit, with its own industrial production, labor market, financial market, resources and environment.
Detailed explanation-2: -Technological advancements reduce costs of transportation and communication across nations and thereby facilitate global sourcing of raw materials and other inputs.
Detailed explanation-3: -But it’s also a cause of globalization because new technologies like the internet and cell phones make it easier to conduct cross-border trade and interactions. Similarly, technologies that have made air flight more efficient have helped increase the flow of people around the world.
Detailed explanation-4: -In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge.