which of the following is not a driving force of globalization? multiple choice rise of the multinational corporation advances in communications and transportation technologie increased restriction on foreign investments reductions in barriers to trade
The Correct Answer and Explanation is :
The correct answer is increased restriction on foreign investments.
Explanation:
Globalization refers to the process of increased interconnectedness and interdependence among countries, particularly in terms of economic, political, and cultural exchanges. Several driving forces facilitate this process, including the rise of multinational corporations, advances in communications and transportation technologies, and reductions in barriers to trade.
- Rise of Multinational Corporations (MNCs): MNCs play a significant role in globalization by operating in multiple countries and contributing to the global economy. They invest in foreign markets, create jobs, and foster economic growth. Their operations often lead to the establishment of supply chains that span across various countries, promoting trade and investment on a global scale.
- Advances in Communications and Transportation Technologies: Technological innovations have dramatically improved the efficiency and speed of communication and transportation. The internet, mobile technology, and advancements in logistics enable businesses to connect with consumers and suppliers worldwide. This has made it easier for companies to conduct international trade, reducing costs and facilitating the movement of goods and services across borders.
- Reductions in Barriers to Trade: Over the past few decades, many countries have engaged in trade liberalization, lowering tariffs and removing other trade barriers. This shift has encouraged countries to open their markets to foreign goods and services, fostering international competition and collaboration. Trade agreements, such as NAFTA and the EU’s single market, exemplify efforts to reduce restrictions and enhance trade among member countries.
Conversely, increased restriction on foreign investments works against the principles of globalization. When countries impose strict regulations or limitations on foreign investments, they create barriers that inhibit the flow of capital and discourage MNCs from entering their markets. Such restrictions can stifle economic growth, limit job creation, and decrease international collaboration, ultimately hindering the globalization process. Thus, while other options represent driving forces, increased restrictions are an obstacle to globalization.