Which of the following is a feature of globalisation in the economic sense?
A. Increasing integration of national economies through trade, investment and technology
B. Only cultural exchange without economic linkages
C. Increasing isolation of national economies
D. Complete ban on cross-border capital flows
Answer: Option A
Solution (By JKSSB Mock Tests)
Economic globalisation refers to the growing interdependence of national economies through the expansion of cross-border trade, capital flows, technology transfer and information exchange.
Explanation:
Market failure occurs when free markets fail to allocate resources efficiently. Causes include externalities, public goods, asymmetric information and monopoly power. Perfect competition is an ideal, not a failure.
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