Globalization increases economic interdependence from "summary" of Principles of Economics by Saifedean Ammous
Globalization refers to the increasing interconnectedness and interdependence of economies around the world. This phenomenon has been driven by advancements in technology, communication, and transportation, which have made it easier for goods, services, and capital to flow across borders. As a result, countries are becoming more economically interdependent, with the actions of one nation having far-reaching implications for others. One of the key ways in which globalization increases economic interdependence is through trade. Countries now rely on each other for a wide range of goods and services, with supply chains spanning multiple nations. This means that disruptions in one part of the world can have ripple effects across the global economy. For example, a natural disaster in one country can lead to shortages of key components in another, impacting production and prices around the world. Another way in which globalization fos...
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