Which of the following best describes globalization?

• A. The process of increasing interdependence among national economies
• B. The reduction of cross-border trade
• C. The isolation of domestic markets
• D. The elimination of competition

Answer: (A)

Globalization is the process of increasing interdependence among national economies. As countries trade more, invest across borders, adopt and adapt technologies, and move goods, services, and people across markets, economies become more connected and reliant on one another. This expanded cross-border activity means changes in one country can impact others quickly, and firms often operate globally rather than only domestically.

The best description among the options is the one that emphasizes growing connections and dependencies across borders, because it directly reflects how globalization expands trade, investment, and collaboration across nations. The other statements describe shrinking cross-border trade, isolated markets, or reduced competition, which run opposite to globalization’s trend of greater international integration and dynamic competition.