Which factor is a driver of international trade and globalisation?

• A. Market liberalisation
• B. Tariff barriers
• C. Domestic focus
• D. Isolationism

Answer: (D)

Opening economies and reducing restrictions is what pushes international trade and globalisation forward. When markets liberalise, tariffs, quotas, and many other barriers are reduced or removed, making it cheaper and easier for firms to buy and sell across borders, invest abroad, and source inputs globally. With fewer obstacles, businesses can specialise where they have a comparative advantage, supply chains become more integrated across countries, and economies become more interconnected through trade, investment, and technology transfer.

Tariff barriers, by contrast, raise the cost of imports and can protect certain domestic industries, but they suppress trade volumes and hinder global integration. A focus on the domestic market limits exposure to international competition and opportunities, while isolationism actively withdraws a country from international economic exchange. So the factor that drives international trade and globalisation is market liberalisation.