A Level Sociology OCR Practice Exam

What characterizes economic globalization?

1. Isolation of local economies

2. Interconnectedness of the world's economies

3. Limited international trade

4. Promotion of local production

The correct answer is: Interconnectedness of the world's economies

Economic globalization is characterized by the interconnectedness of the world's economies, which refers to the increasing integration and interdependence of national economies through trade, investment, technology exchange, and communication. This process results in the expansion of economic activities across national borders, leading to a more interconnected global market. As countries engage in international trade, they exchange goods, services, and capital, facilitating access to a broader range of products and markets. This interconnectedness has multifaceted implications, such as the ability to specialize in production, which leads to greater efficiency and potentially lower prices for consumers. Furthermore, it fosters cultural exchange and the dissemination of technology. The other options contradict the essence of economic globalization. Isolation of local economies suggests a disengagement from global networks, while limited international trade would imply minimal interactivity between economies. Similarly, the promotion of local production may occur in localized contexts but doesn't capture the broader trend of how global economies are increasingly tied together through trade and investment.