The table below shows the estimated average tariff rates of industrialized nations during the second half of the twentieth century.
| Year | Average Tariff Rate |
|---|---|
| 1947 | 40% |
| 1973 | 11% |
| 1995 | 5% |
| 2000 | 4% |
Which of the following global economic developments in the late twentieth century was most directly facilitated by the trend shown in the table?
- The expansion of international trade and the growth of transnational corporationsAnswer
- BThe revival of mercantilist policies aimed at accumulating precious metals
- CThe establishment of direct European colonial administration in Asia and Africa
- DThe complete cultural homogenization of all global consumer societies
Answer
The expansion of international trade and the growth of transnational corporations
The correct answer is correct because the dramatic decline in tariff rates from 1947 to 2000 represents the process of trade liberalization. Lowering tariffs reduced barriers to international commerce, which directly enabled the rapid growth of global trade and the expansion of transnational corporations that operate across multiple countries.
Step-by-Step Solution
Key Concept
Trade liberalization and the growth of multinational corporations in the late twentieth century.
Estimated Time:45s