Which of the following statements is incorrect?
A) Globalization has resulted in faster economic growth and reductions in poverty.
B) To avoid globalization in order to avoid financial crises is to remain in poverty as the rest of the world grows richer.
C) A closed economy can follow very bad economic policies for a long time.
D) Globalization allows the rest of the world to respond to bad economic policies in a way that highlights the bad policy.
E) A country with sound economic policy and good investment opportunities is rewarded with large flows of savings from the rest of the world to increase the cost of developing the local economy.

Question

Quizplus · Accepted Answer

The incorrect statement is E because it inaccurately suggests that large flows of savings into a country with sound economic policy and good investment opportunities increase the cost of developing the local economy. In reality, these flows typically reduce the cost of capital, making it cheaper to invest and develop the economy.

Which of the Following Statements Is Incorrect