Question

What effect does increasing economic interdependence have on the countries of the world?

Answer 1

This question is incomplete because the options are missing; here is the complete question:

What effect does increasing economic interdependence have on the countries of the world?

A. Growing international trade and rising standards of living  

B. Greater power for international organizations  

C. Trade wars and the increase of protective trade policies

D. Loss of comparative advantage for developed countries

The answer to this question is  A. Growing international trade and rising standards of living  

Explanation:

In economics, interdependence refers to the economical dependence or compulsory relationship between countries through trade. This occurs because most countries specialize in a few services or products, and therefore need to trade with others to obtain products and services they do not produce. For example, Japan specializes in the production of technology but not in the agriculture products, and due to this, Japan needs to trade with other countries to obtain them.

In this context, one positive effect of economic interdependence is the growth of international trade because interdependence increases the imports and exports of countries as trade is necessary to supply the needs of most countries. Additionally, this rise the standards of living in the countries participation because the trade benefits economy and helps countries to develop.