Question

Which of these has been the MOST important factor in the rise of globalized trade?

• A. increase in world population
• B. emergence of multinational corporations
• C. decline in regional national resources
• D. breakdown of protective tariffs
• E. enhancement of communications technologies

Answer 1

Answer: (D)

breakdown of protective tariffs

Protective tariffs are taxes, duties, or other roadblocks (generally in the form of monetary fees) placed on foreign goods by a national or state government in order to protect domestic products and markets. The increased fees levied on foreign goods are generally passed on to the consumer, making the foreign goods considerably more expensive than similar goods produced within the country.