Which statement describes globalization's role in development?

• A. Globalization always reduces inequality everywhere.
• B. Globalization can facilitate technology transfer and cross-border investment, promoting development.
• C. Globalization eliminates regulatory controls.
• D. Globalization has no impact on development.

Answer: (B)

Globalization can facilitate technology transfer and cross-border investment, promoting development because it lets new ideas, methods, and capital move more quickly across borders. When a country can adopt advanced technologies and attract investment, productivity tends to rise, jobs can be created, and connections to global markets help strengthen growth and living standards—especially when there are capable institutions and policies to absorb and use these innovations effectively. It’s important to note that globalization’s effects aren’t automatic: inequality can grow or shrink depending on how a country manages changes, regulatory controls persist or adapt, and development outcomes hinge on broader governance and investment in people and infrastructure.