An economy that grows in world interdependence experiences

Question

Quizplus · Accepted Answer

When an economy grows in world interdependence, it experiences growing trade on the basis of comparative advantage, which leads to wealth accumulation. However, it also becomes more vulnerable to the business cycles of trading partners, as economic shocks in other countries can have ripple effects on the interconnected global economy. Therefore, all of the above options are correct.

An Economy That Grows in World Interdependence Experiences