Question

Benefits of globalization is/are ______________.

• A. Competitiveness
• B. Drop in price
• C. Increase in foreign exchange reserves
• D. All of the above

Answer 1

The correct option is D All of the above

Globalization leads to increased competition. Globalization promotes free trade which promotes global economic growth that makes countries more competitive. With an increase in the competition between countries, they tend to reduce the prices in order to manipulate their currency to get a price advantage. Moreover, foreign exchange reserves are essential for an open economy. Increase in foreign exchange reserves is another benefit of globalization.