Which statement is true about globalization?

Which statement is true about globalization?

• A. It occurs only in developed economies.
• B. It involves increasing interdependence among national institutions and economies.
• C. It reduces technology exchange.
• D. It eliminates foreign direct investment.

Answer: (B)

Globalization is about growing ties and interdependence across borders—trade, investment, technology, ideas, and institutions becoming more connected. The true statement captures this by describing increasing interdependence among national economies and institutions. It isn’t limited to developed economies, as many developing and emerging markets are now deeply integrated through trade, investment, and knowledge flows. Globalization also accelerates technology exchange, not reduces it, as innovations spread across countries. And it doesn’t eliminate foreign direct investment; in fact, globalization often coincides with higher levels of FDI as firms invest abroad to access new markets and optimize production.

Globalization is about growing ties and interdependence across borders—trade, investment, technology, ideas, and institutions becoming more connected. The true statement captures this by describing increasing interdependence among national economies and institutions. It isn’t limited to developed economies, as many developing and emerging markets are now deeply integrated through trade, investment, and knowledge flows. Globalization also accelerates technology exchange, not reduces it, as innovations spread across countries. And it doesn’t eliminate foreign direct investment; in fact, globalization often coincides with higher levels of FDI as firms invest abroad to access new markets and optimize production.