Question

1.4 cfa commerce & interdependence
1.4 mc: how can trade networks impact a countrys economy?
○ a) by promoting economic growth and development through increased trade and investment
○ b) by isolating a country from global markets and limiting economic opportunities
○ c) by creating dependence on foreign goods and resources, leading to economic instability
○ d) by increasing government control over the economy and restricting free trade

Explanation:

To determine the correct answer, we analyze each option:

• Option a: Trade networks typically facilitate increased trade (imports/exports) and investment (foreign direct investment, etc.). More trade can bring in new markets for a country's goods, access to cheaper or better resources, and investment which can boost production, create jobs, and drive economic growth and development. This aligns with the positive impact of trade networks.
• Option b: Trade networks connect countries to global markets, so they do not isolate. Isolation would limit economic opportunities, but trade networks do the opposite. Eliminate b.
• Option c: While over - dependence on foreign goods/resources can be a risk, well - managed trade networks (with appropriate domestic production and diversification) do not inherently lead to instability. The primary impact of trade networks is positive in terms of growth, so c is not the main or most accurate impact. Eliminate c.
• Option d: Trade networks are about facilitating trade (both domestic and international), not increasing government control to restrict free trade. In fact, many trade networks (like free - trade agreements) aim to reduce government - imposed trade barriers. Eliminate d.

Answer:

a) By promoting economic growth and development through increased trade and investment