Which of the following could be a threat posed by globalization?
A) Dependence on the global market makes an economy susceptible to unfavorable changes in its long-run exchange rate.
B) An increase in the knowledge and familiarity with other cultures.
C) A possible increase in the living standards of developing nations due to job creation.
D) A possible decline in the level of global competition.

Question

Quizplus · Accepted Answer

Globalization can lead to increased dependence on the global market, making an economy more vulnerable to fluctuations in exchange rates, which can adversely affect its stability and growth.

Which of the Following Could Be a Threat Posed by Globalization