One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have farreaching impact.

Question

One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have far­reaching impact.

Quizplus · Accepted Answer

This statement is true. The interconnectedness of global trade means that a crisis, such as a financial or economic downturn, in one country can have significant consequences for other countries and even the global economy as a whole. Examples of this include the 2008 global financial crisis, which began with the collapse of the US housing market but had ripple effects around the world, and the ongoing COVID-19 pandemic, which has disrupted supply chains and caused economic turmoil globally.

One Major Risk of Engaging in Global Trade Is That