The term for the interdependence of economies through cross-border trade and investment is?

The term for the interdependence of economies through cross-border trade and investment is?

• A. Economic nationalism
• B. Globalization
• C. Protectionism
• D. Regionalism

Answer: (B)

The idea being tested is how economies become interdependent through trade and investment across borders. This is globalization. Globalization describes the growing connections among countries through the exchange of goods and services, capital, technology, and people. When companies source parts from multiple countries, set up operations abroad, or rely on foreign investment and supply chains, economies become linked in ways that spread economic effects across borders. The other terms describe different approaches: economic nationalism emphasizes prioritizing the domestic economy and reducing reliance on foreign influences; protectionism uses tariffs and barriers to shield domestic industries from foreign competition; regionalism focuses on deeper economic ties within a specific geographic area rather than worldwide. So the term that best captures cross-border interdependence of economies is globalization.

The idea being tested is how economies become interdependent through trade and investment across borders. This is globalization. Globalization describes the growing connections among countries through the exchange of goods and services, capital, technology, and people. When companies source parts from multiple countries, set up operations abroad, or rely on foreign investment and supply chains, economies become linked in ways that spread economic effects across borders.

The other terms describe different approaches: economic nationalism emphasizes prioritizing the domestic economy and reducing reliance on foreign influences; protectionism uses tariffs and barriers to shield domestic industries from foreign competition; regionalism focuses on deeper economic ties within a specific geographic area rather than worldwide. So the term that best captures cross-border interdependence of economies is globalization.