Question

All of the transactions that occur in connected markets across the economies of different countries create...

Answer 1

The transaction that occurs between diverse industries across countries creates "a globalized economy".

Since the second half of the 20th century, trade between countries has suffered exponential growth. This is due to 2 reasons:

• Some countries have more developed industries in certain fields. This is what effectively generates trade, as a country will import the goods it does not produce or lacks the conditions to do so.

• Production factors such as raw materials or workforce are cheaper in certain countries. This has led companies to move their production to these latitudes.