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  1. Which one of the following has facilitated globalisation of international trade the most?
    1. Lowering of the tariff barriers
    2. Foreign Direct Investment
    3. Business Processes Outsourcing
    4. E-Commerce
Correct Option: A

Globalization started after World War II but has accelerated considerably since the mid-1980s, driven by two main factors. One involves technological advances that have lowered the costs of transportation, communication, and computation; while the other factor has to do with the increasing liberalization of trade and capital markets. More and more countries refused to protect their economies from foreign competition of influence through import tariffs and trade barriers such as import quotas, exports restraints and legal prohibitions. All these helped the cause of international trade.



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