The new international division of labor reflects the growing importance of which of the following factors in the global economy?

• A. Globalization and outsourcing of production
• B. Protectionist trade policies
• C. Autarky and self-sufficiency
• D. Local consumption over international trade

Answer: (A)

Verified step by step guidance

1. Understand the concept of the 'new international division of labor,' which refers to the way production processes are spread across different countries, often based on comparative advantages and cost efficiencies.
2. Recognize that this division is driven by factors that encourage countries and firms to specialize in certain stages of production, often outsourcing parts of the process to other countries.
3. Identify that globalization facilitates this process by reducing barriers to trade and communication, making it easier to coordinate production internationally.
4. Note that outsourcing production is a key feature, where companies contract out parts of their manufacturing or services to other countries to reduce costs and increase efficiency.
5. Contrast this with other options like protectionist trade policies, autarky, or prioritizing local consumption, which tend to limit international cooperation and division of labor rather than promote it.