Globalization often leads to local economies becoming more specialized, leading to interdependence. This means that as local economies integrate into the global market, they may specialize in certain industries or sectors where they have a comparative advantage, which can enhance productivity and economic growth but also increase their reliance on international trade and markets. This specialization can promote interdependence among local economies as they trade goods and services with one another and with other countries.
How does globalization impact the development of local economies? (1 point)
• Globalization does not impact local economies since it primarily deals with international trade.
• Globalization often leads to local economies becoming more specialized, leading to interdependence.
Globalization has led local urban centers to focus on primary industries in order to compete on an international scale.
• Globalization forces local economies to become more diverse so that they can remain self-sufficient.
1 answer