Economics · Globalisation
Economic globalisation, while promoting cross-border investment, trade liberalisation, and the spread of technology, also introduces vulnerabilities and disparities. Which of the following statements best captures a nuanced understanding of the multi-dimensional nature of economic globalisation?
- 1The process of economic globalisation began only after the establishment of the World Trade Organization (WTO) in 1995.
- 2Economic globalisation is a linear process driven only by trade and foreign investment flows in manufacturing sectors.
- 3Economic globalisation encompasses the increasing integration of national economies through trade, capital flows, technology transfer, labour mobility, and institutional linkages, but also generates concerns such as loss of sovereignty, widening inequality, and financial contagion risks.✓
- 4Economic globalisation solely benefits developed countries by ensuring complete capital mobility and investment security.
Correct answer
Economic globalisation encompasses the increasing integration of national economies through trade, capital flows, technology transfer, labour mobility, and institutional linkages, but also generates concerns such as loss of sovereignty, widening inequality, and financial contagion risks.
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