Question

Which of the following accurately analyzes the similarities between the two waves of globalization?(1 point)

In both waves, agricultural products were the most traded commodity.

Globalization reduced poverty in less developed countries in both waves.

Transnational corporations accumulated disproportionate wealth in both waves.

Neocolonial economics were the basis for globalization in both waves.

Answer 1

Correct choice: Transnational corporations accumulated disproportionate wealth in both waves.

Why: Both the late-19th/early-20th-century globalization and the post-1970s/globalization era were characterized by large, cross-border firms concentrating economic power and wealth (e.g., colonial trading companies, banks and industrial conglomerates in the first wave; modern multinationals and financial firms in the second).

Why the others are incorrect:
- Agricultural products dominated trade in the first wave but not the second, which is driven by manufactured goods and services.
- Globalization did not uniformly reduce poverty in less-developed countries in both waves; impacts were mixed and context-dependent.
- “Neocolonial” economics describes postcolonial forms of dependence and is not the basis of the first-wave (which involved formal colonial empires), so it doesn’t apply to both.