Question

Match each current trend in the global economy with the benefit it provides. A. Improved communication Helps developing countries B. Free-trade policies Reduces distribution costs C. Development of infrastructure Increases the mobility of goods and labor D. Industrialization Facilitates international trade

Answer 1

The correct matches are the following.

A.- Improved communications: facilitates international trade.

B.- Free Trade Policies: increases the mobility of goods and labor.  

C.- Development of infrastructure: reduces distribution costs.

D.- Industrialization: helps developing countries.

These global trends in the current economy help a country to increase its foreign commerce in a secure way, reducing costs, and maximizing the efficiency of resources. For instance, free trade produces an increase in sales due to lower prices of exportation. There are no tariffs barrier between countries who have free trade agreements. That is the case of the free trade agreement between Mexico, Canada, and the United States.