Which concept describes the increasing interconnection of economies worldwide?

Which concept describes the increasing interconnection of economies worldwide?

• A. Isolationism
• B. Mercantilism
• C. Globalization
• D. Autarky

Answer: (C)

Globalization describes the growing interconnectedness of economies worldwide through stronger trade links, investment, technology, and communication. This means goods, services, capital, ideas, and people move across borders more easily, creating integrated markets and interdependence among countries. That’s exactly what the question is highlighting—the trend of economies becoming more connected on a global scale. The other terms describe different approaches: isolationism aims to limit international economic engagement; mercantilism is an old framework focused on accumulating wealth through trade surpluses and protectionist policies; autarky refers to a self-sufficient economy with little to no trade. Globalization best captures the phenomenon of increasing cross-border economic interaction.

Globalization describes the growing interconnectedness of economies worldwide through stronger trade links, investment, technology, and communication. This means goods, services, capital, ideas, and people move across borders more easily, creating integrated markets and interdependence among countries. That’s exactly what the question is highlighting—the trend of economies becoming more connected on a global scale.

The other terms describe different approaches: isolationism aims to limit international economic engagement; mercantilism is an old framework focused on accumulating wealth through trade surpluses and protectionist policies; autarky refers to a self-sufficient economy with little to no trade. Globalization best captures the phenomenon of increasing cross-border economic interaction.