Which of the following explains how microlending policies can lead to interdependence in the world economy?

Question

Group of answer choices

Microlending policies result in decreased infrastructure expenditures in less developed countries because the loans are specifically for improvements in more developed countries.

Increased funding opportunities for individuals in less developed countries have led to increased economic stability on a local level and trade opportunities with other countries.

Decreased funding opportunities for governments in less developed countries through microlending policies have led to isolationism and decreased trade.

Microlending policies increase debt in less developed countries because banks in more developed countries make the loans.

Increased restrictions for the lending of microloans by banks and international lending agencies make it difficult for less developed countries to succeed in their goals.

Answer 1

The option that best explains how microlending policies can lead to interdependence in the world economy is:

Increased funding opportunities for individuals in less developed countries have led to increased economic stability on a local level and trade opportunities with other countries.

This choice highlights how microlending can empower individuals and improve local economies, which can in turn foster trade relationships and create economic interdependence among countries. When individuals in less developed countries gain access to funding and are able to start businesses, it can lead to increased production and consumption, which enhances trade with other nations.