Which of these statements about globalization is true?

• A. Globalization increases the interdependence of economies around the world.
• B. Globalization leads to the elimination of all trade barriers between countries.
• C. Globalization causes all countries to adopt the same economic policies.
• D. Globalization only benefits developed countries and harms developing countries.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of globalization in microeconomics. Globalization refers to the increasing integration and interdependence of national economies through trade, investment, technology, and the movement of labor and capital.
2. Step 2: Analyze each statement carefully by comparing it with the definition and effects of globalization. For example, consider whether globalization truly eliminates all trade barriers or if some barriers still exist.
3. Step 3: Evaluate the claim that globalization causes all countries to adopt the same economic policies. Reflect on the diversity of economic systems and policies that persist despite globalization.
4. Step 4: Consider the statement about globalization benefiting only developed countries and harming developing countries. Think about the mixed effects globalization can have, including opportunities and challenges for both developed and developing nations.
5. Step 5: Conclude which statement aligns best with the core idea of globalization. The true statement should reflect the increased economic interdependence among countries, which is a fundamental characteristic of globalization.