Comprehension
Economic globalization has led to increased interdependence among nations, fostering trade and investment across bordersHowever, this interconnectedness also exposes economies to global shocks and financial crises, requiring robust international cooperation and regulation to manage potential risks and ensure stability.
Question: 1
What is a challenge associated with economic globalization mentioned in the passage?
What is a challenge associated with economic globalization mentioned in the passage?
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Carefully distinguish between benefits and challenges described; challenges often relate to risks arising from interconnectedness
Updated On: Oct 6, 2025
- Global shocks and financial crises
- Reduced international trade
- Decreased financial interdependence
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The Correct Option is B
Solution and Explanation
The passage discusses how economic globalization increases interdependence and promotes trade, but also highlights a key challenge the vulnerability to "global shocks and financial crises" These risks arise from the interconnected nature of global economies, emphasizing the need for international cooperation
Evaluating the
(A) Increased economic isolation — Opposite to the passage’s description of increased interdependence
(B) Global shocks and financial crises — Directly identified as challenges
(C) Reduced international trade — The passage mentions increased trade, not reduction
(D) Decreased financial interdependence — The passage states interdependence increases
Thus, option (B) correctly reflects the passage’s challenge associated with globalization
(A) Increased economic isolation — Opposite to the passage’s description of increased interdependence
(B) Global shocks and financial crises — Directly identified as challenges
(C) Reduced international trade — The passage mentions increased trade, not reduction
(D) Decreased financial interdependence — The passage states interdependence increases
Thus, option (B) correctly reflects the passage’s challenge associated with globalization
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