Which statement best describes the impact of globalization and the digital revolution on economies since 1960?

Which statement best describes the impact of globalization and the digital revolution on economies since 1960?

• A. Increased automation, outsourcing, digital connectivity, new industries, and shifts in labor markets.
• B. Global economic collapse and stagnation.
• C. Reduction in information access.
• D. Insulation from international competition.

Answer: (D)

Globalization and the digital revolution have increased economic interdependence and transformed how economies organize production and work. Since 1960, advances in transportation, communication, and computing lowered the costs of moving goods, capital, and information across borders. This spurred automation within firms, the outsourcing and offshoring of some production to lower-cost locations, and the use of digital networks to coordinate complex global supply chains. New industries—especially in information technology, services, e-commerce, and digital platforms—emerged, and the demand for labor shifted toward more skilled, tech-enabled roles. Information flows and markets expanded dramatically, leading to more competition and continual adaptation in economies worldwide. The other statements don’t fit: widespread economic collapse and stagnation isn’t the general outcome of globalization and the digital era; reduction in information access runs contrary to the explosion of data and connectivity; and insulating economies from international competition contrasts with the reality of growing interdependence.

Globalization and the digital revolution have increased economic interdependence and transformed how economies organize production and work. Since 1960, advances in transportation, communication, and computing lowered the costs of moving goods, capital, and information across borders. This spurred automation within firms, the outsourcing and offshoring of some production to lower-cost locations, and the use of digital networks to coordinate complex global supply chains. New industries—especially in information technology, services, e-commerce, and digital platforms—emerged, and the demand for labor shifted toward more skilled, tech-enabled roles. Information flows and markets expanded dramatically, leading to more competition and continual adaptation in economies worldwide. The other statements don’t fit: widespread economic collapse and stagnation isn’t the general outcome of globalization and the digital era; reduction in information access runs contrary to the explosion of data and connectivity; and insulating economies from international competition contrasts with the reality of growing interdependence.