CFA Level I · CFA Level I Exam · Introduction to Geopolitics
Which of the following developments is most likely to be associated with a trend of deglobalization?
Companies relocating production closer to home markets is most likely associated with deglobalization, since it reduces reliance on distant foreign supply chains. Rising cross-border flows and new free trade areas point toward deeper integration, which is the opposite trend.
- ACompanies relocating production closer to home marketsCorrect
- BRising cross-border flows of goods, capital and people
- CCountries joining new regional free trade areas
Explanation
Reshoring or near-shoring production reduces dependence on distant foreign suppliers and is a hallmark of deglobalization. Rising cross-border flows and new free trade areas signal deeper integration.
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