In an effort to encourage investment, the president of Country X reduced tariffs, making the country more attractive to Company Y, which came in and built a large factory. Company Y used local, cheap labour, but made a product these people could not afford to buy. The product was shipped to Country Z, where citizens could purchase and enjoy the new product. What could this set of relationships between countries be called?
A) bottom-up globalization
B) top-down globalization
C) global market forces
D) global demand forces

Question

Quizplus · Accepted Answer

This is an example of top-down globalization, where decisions made by powerful actors such as the president of a country and large corporations lead to changes in the global economy that may not benefit all countries or individuals equally.

In an Effort to Encourage Investment, the President of Country