Question

Which of the following is a likely cause of​ globalization? A. Trade barriers have been added worldwide. B. Developing economies lack competitive producers. C. Many emerging markets are now​ value-adding producers. D. The World Trade Organization has increased trade barriers. E. Countries have avoided adding​ free-market reforms.

Answer 1

Answer: Option B

Explanation: Globalization refers tot he process under which certain business entities starts operating their business in many different countries of the world.

One of the major reasons behind the increasing globalization is the condition in developing nations. The developing nations like India and Pakistan have a large population with a strong purchasing power, but due to lack of technology and capital these economies lack competitive producers.

Therefore, every second business firm with sufficient resources wants to operate in these economies for profit maximization.