What Is the Basic Premise That Drives the Process of Globalization

question 16

Multiple Choice

What is the basic premise that drives the process of globalization?

• A) Formal economy is much better than informal economy.
• B) Economies worldwide will improve if we utilize the lessons of the Industrial Revolution and focus solely on import and export.
• C) Economies will be healthier and will grow better if we operate with free markets with free trade and competition.
• D) Global trade will increase cultural homogeneity and decrease incidence of warfare and intolerance.
• E) Economies should be left alone because no country can actually regulate them.

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Definitions:

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, showing the same level of satisfaction or utility from each bundle.

Budget Constraint

The limits imposed on household or individual choices by income, wealth, and product prices.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the trade-offs they are willing to make.

Compensated

Refers to receiving payment or reimbursement for services provided or damages incurred; in economics, often related to adjustments for changes in external factors.