Which of the following best describes globalisation?

The Correct answer is Increasing international interdependence and trade.

Key Points

• Globalisation refers to the process of increasing worldwide interdependence among economies, cultures, and populations due to international trade, technology, investment, and cultural exchange.
• It leads to the integration of global markets, fostering the movement of goods, services, capital, and labor across borders.
• Globalisation promotes economic growth by creating access to larger markets and encouraging competition, which drives innovation and efficiency.
• It enhances cultural exchange, enabling the dissemination of ideas, traditions, and knowledge across the globe.
• International organisations like the World Trade Organization (WTO) and agreements such as Free Trade Agreements (FTAs) play a significant role in facilitating globalisation.
• Major drivers of globalisation include advancements in technology, such as the internet, and improvements in transportation infrastructure, which reduce barriers to trade and communication.
• Globalisation has also led to the rise of multinational corporations, which operate in multiple countries and contribute to the interconnectedness of economies.

 Additional Information

• Isolating economies from global markets
  • This option describes the opposite of globalisation, commonly referred to as economic isolationism.
  • Economic isolation involves limiting trade and interaction with other countries to protect domestic industries or maintain self-reliance.
  • Some countries adopt isolationist policies during periods of crisis, but such measures often hinder economic growth and innovation.
• Reducing international trade
  • Reducing international trade generally occurs due to protectionist policies, such as tariffs, quotas, and trade restrictions.
  • This approach contrasts with globalisation, which aims to increase the exchange of goods and services across borders.
  • While protectionism can safeguard certain industries, it may lead to reduced economic efficiency and less consumer choice.
• Limiting cultural exchange
  • Limiting cultural exchange is the opposite of one of the benefits of globalisation, which fosters the sharing of traditions, languages, and practices worldwide.
  • Restricting cultural exchange can lead to a lack of mutual understanding and cooperation between nations.
  • Globalisation enhances cultural diversity by enabling people to experience and adopt elements from other cultures.