The trend of the world economy toward becoming a more interdependent system is known as
The correct answer and explanation is:
The correct answer is globalization.
Globalization refers to the increasing interconnectedness and interdependence of the world’s markets, cultures, and economies. It is a complex process that has been driven by advancements in technology, communication, trade, and transport, which have made it easier for people, companies, and nations to exchange goods, services, and ideas across borders.
One of the key components of globalization is economic integration, where countries become more dependent on each other for trade and investment. This has led to the growth of global supply chains, with raw materials, components, and finished products being sourced from different parts of the world. Companies are now able to tap into international markets, accessing resources and labor at competitive prices, which drives down production costs and allows for more efficient production methods.
In addition to trade, globalization has spurred the movement of people and capital. Financial markets are increasingly interconnected, and capital flows across borders have grown exponentially. This has provided developing economies with access to foreign investments, which can stimulate growth and development. Similarly, the migration of labor across countries has led to the sharing of skills and ideas.
While globalization has led to many positive outcomes, such as increased economic growth, access to goods, and improved living standards, it has also raised concerns. There are fears that globalization has contributed to the widening wealth gap between rich and poor countries and has led to job losses in certain industries, particularly in developed nations. Additionally, globalization has led to cultural homogenization, where local traditions and identities may be overshadowed by dominant global cultures.
Despite these challenges, globalization continues to shape the global economy and influence political, social, and environmental dynamics worldwide.