Question

While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality?A: The advances in communication, information processing, and transportation technologiesB: The rise of communism and the need for independent economies on a global scaleC: The increasing diversity in consumer tastes and preferences worldwideD: The increasing differences in the material culture the world overE: The decreasing significance of the World Trade Organization

Answer 1

Answer:

Option (C) is correct.

Explanation:

Globalization has become a tangible reality because of the increase in the diversity of consumer preferences and tastes. When trade restrictions between the nations are relaxed then this will lead to more trade among the nations. This is all because of the dissimilarity in the preferences and tastes of the individuals.

Different individual demand different types of commodities. Hence, this will to globalization of markets and production level of the nations also increases.

This diversity in the consumer preferences and tastes and lower trade restrictions gives an incentive to the producers of the different countries to produce different types of commodities.