Which statement best describes globalisation?

• A. Decreasing cross-border trade
• B. Isolating economies
• C. Harmonisation of laws into a single global market
• D. Increasingly localised production

Answer: (C)

Globalisation means economies becoming more connected and interdependent across borders, especially through trade, investment, information flows, and the rules that govern cross-border activity. The statement that best describes this is that laws and regulations are harmonised to create a more unified global market. As countries trade more and invest across borders, they often adopt common standards and align legal regimes—things like product safety rules, intellectual property protections, contract law, and tax cooperation—to reduce barriers and make it easier for businesses to operate internationally. This alignment supports freer movement of goods, services, and capital, which is at the heart of globalisation.

The other ideas run counter to this trend: trade isn’t shrinking with globalisation, economies aren’t moving toward isolation, and production becoming more localised goes against the widespread development of global supply chains where parts and products are made across multiple countries.