O Levels Economics (2281)•2281/12/M/J/21

Explanation
Protectionism opposes globalization by restricting trade
Steps:
- Define globalization as the increasing interconnectedness of economies through trade, investment, and markets.
- Identify factors that promote it, like open markets and investments, versus those that hinder it, like barriers to trade.
- Review choices: A, B, and C facilitate global links, while D imposes restrictions.
- Select D as it directly counters economic integration.
Why D is correct:
- Protectionist policies, by definition, use tariffs, quotas, or subsidies to shield domestic industries from foreign competition, reducing cross-border trade and investment flows.
Why the others are wrong:
- A: A single world market eliminates barriers, boosting global trade.
- B: Direct foreign investment expands multinational operations across borders.
- C: Trade in financial services increases international capital mobility.
Final answer: D
Topic: Globalisation, free trade and protection
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