Which of the following has most contributed to the globalization of the economy?
A)tariffs and trade barriers
B)the decline in the relative importance of manufacturing
C)the decreased importance of agriculture
D)reductions in transportation and communication costs
E)the shift toward a market economy in China

Question

Quizplus · Accepted Answer

Reductions in transportation and communication costs have enabled companies to more easily operate on a global scale by facilitating the movement of goods, services, and information across borders. This has allowed for increased trade and investment between countries, leading to the globalization of the economy. Tariffs and trade barriers (A) have typically had the opposite effect, limiting trade and increasing barriers to entry for foreign companies. The decline in the relative importance of manufacturing (B) and the decreased importance of agriculture (C) may have had some impact on the structure of the global economy, but are not necessarily drivers of globalization. While the shift toward a market economy in China (E) has had an impact on the global economy, it is not the primary contributor to globalization.

Which of the Following Has Most Contributed to the Globalization