Examkin

Question

Difficulty: EasyEconomics in the Global Age

Source: United Nations Development Programme (UNDP), Human Development Report, 1999.

'Today’s globalization is being driven by new markets—foreign exchange and capital markets linked globally, operating 24 hours a day... new tools—Internet links, cellular phones, media networks... new actors—the World Trade Organization (WTO) with authority over national governments, multinational corporations with more economic power than many states... and new rules—multilateral agreements on trade, services and intellectual property.'

The developments described in the passage were most directly supported by which of the following economic trends in the late twentieth century?

  1. The global spread of free-market economic policies and the reduction of trade barriersAnswer
  2. B
    The expansion of direct colonial administration and territorial annexation by major powers
  3. C
    The revival of state-controlled mercantilist trade monopolies and high protective tariffs
  4. D
    The implementation of eco-friendly agricultural regulations associated with the Green Revolution

Answer

The global spread of free-market economic policies and the reduction of trade barriers
The correct answer is correct because the late twentieth century was characterized by the spread of neoliberalism and free-market capitalism, which promoted deregulation, privatization, and the reduction of international trade barriers, directly fostering the growth of the World Trade Organization and multinational corporations.

Step-by-Step Solution

1
Analyze the stimulus to identify the core phenomenon being described.
The UNDP report describes key features of late-twentieth-century globalization, including the rise of the World Trade Organization (WTO), multinational corporations, and integrated global capital markets.
Understanding the focus of the text is essential for connecting it to broader historical trends.
2
Contextualize the rise of these 'new actors' and 'new rules' within late-twentieth-century global economics.
The late twentieth century was characterized by neoliberal economic reforms, deregulation, and the active reduction of tariffs to promote free trade.
This step connects the specific elements in the text (like the WTO and multinational corporations) to their structural causes.
3
Evaluate the answer choices to find the trend that directly facilitated these developments.
The option describing the spread of free-market economic policies matches this context, while options involving colonial annexation, mercantilism, or the Green Revolution are historically inaccurate or irrelevant to the growth of global financial networks.
This confirms the correct option while eliminating distractors based on historical inaccuracies.

Key Concept

The growth of free-market economic principles and deregulation in late-twentieth-century globalization.
Rate this question

Topics

Economics in the Global Age

More questions from this topic