Direction: In the following questions, you have two brief passages with 3 questions following each passage. Read the passages carefully and choose the best answer to each question out of the four alternatives.PASSAGEInternational trade represents a significant share of Gross Domestic Product (GDP). While international trade has been present throughout much of history, its economic, social and political importance has been on the rise in recent centuries. Industrialization, advances in tecnology, transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. International trade is, in principle, not different from domestic as the motivation and the behaviour of parties is across a border or not. The main difference is that international trade. Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries.Q.According to the author, increasing international trade?a)brings about speedy industrializationb)uplifts technology and transportationc)is crucial to the continuance of globalizationd)encourages multinational corporationsCorrect answer is option 'C'. Can you explain this answer?

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Direction: In the following questions, you have two brief passages with 3 questions following each passage. Read the passages carefully and choose the best answer to each question out of the four alternatives.
PASSAGE
International trade represents a significant share of Gross Domestic Product (GDP). While international trade has been present throughout much of history, its economic, social and political importance has been on the rise in recent centuries. Industrialization, advances in tecnology, transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. International trade is, in principle, not different from domestic as the motivation and the behaviour of parties is across a border or not. The main difference is that international trade. Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries.

Q. According to the author, increasing international trade?

a)
brings about speedy industrialization
b)
uplifts technology and transportation
c)
is crucial to the continuance of globalization
d)
encourages multinational corporations

Correct answer is option 'C'. Can you explain this answer?

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MCQ: Reading Comprehension - 5(Easy)

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Direction: In the following questions, you have two brief passages wit...

Understanding the Importance of International Trade
International trade plays a vital role in the global economy, and its increasing significance is highlighted in the passage. The correct answer to the question about the implications of increasing international trade is option 'C': it is crucial to the continuance of globalization.
Reasons for the Correct Answer
- Globalization Link:
The passage states that increasing international trade is essential for the continuation of globalization. This indicates that as trade between nations grows, it fosters interconnectedness among economies, cultures, and societies, which is fundamental to the concept of globalization.
- Economic Integration:
With more international trade, countries become more economically integrated. This interdependence leads to a more collaborative global market, driving economic growth and stability.
- Enhancement of Trade Practices:
The passage mentions that industrialization, technology, and transportation advancements are influenced by international trade. These factors contribute to a more efficient and expansive global trade system, further embedding globalization.
Why Other Options Are Incorrect
- Option A: Brings about speedy industrialization
While international trade can encourage industrialization, the passage does not explicitly link increasing trade to speeding up this process.
- Option B: Uplifts technology and transportation
Although technology and transportation are impacted by international trade, the passage does not state that increasing trade directly uplifts these areas.
- Option D: Encourages multinational corporations
The passage mentions multinational corporations but does not claim that increasing international trade specifically encourages them.
Conclusion
Thus, option 'C' is the most accurate reflection of the passage's main idea, emphasizing the critical role of international trade in sustaining globalization.

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Direction: In the following questions, you have two brief passages wit...

Increasing international trade is crucial to the continuance of globalization

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