Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What does globalization entail?

1. The isolation of national economies

2. The increasing integration of the world economy

3. The promotion of local businesses over multinational companies

4. The reduction of international trade barriers

The correct answer is: The increasing integration of the world economy

Globalization involves the increasing integration of the world economy, which indicates that countries are becoming more interconnected through various means such as trade, technology, investment, and cultural exchange. This integration leads to a more interdependent economic environment where goods, services, and capital flow more freely across borders, contributing to economic growth and development on a global scale. While other aspects of globalization may involve reducing trade barriers or considering local businesses, the primary characteristic that defines globalization is the overall enhancement of interconnectedness in economic systems worldwide. This defines how businesses operate and interact across different regions, shaping economic policies and practices on a global level. Thus, the concept of increased integration clarifies the essence of globalization beyond just trade dynamics or local business preferences.