What is the process of removing trade barriers between countries known as?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

The process of removing trade barriers between countries is known as globalization. This involves the integration of economies, cultures, and populations across the globe, significantly facilitated by trade liberalization, which reduces tariffs, quotas, and other restrictions on international trade. As globalization advances, it encourages countries to engage in trade with fewer constraints, leading to an increase in the exchange of goods, services, and ideas across borders.

Global sourcing refers specifically to the practice of sourcing goods and services from the global market, but it does not encompass the wider notion of trade barrier reduction. Outsourcing pertains to the relocation of business processes or functions to external organizations, often to cut costs, rather than addressing the broader context of trade barriers. Importation simply refers to the act of bringing goods into a country from abroad, which is a consequence of trade policies but does not represent the systemic process of removing barriers that is characteristic of globalization.

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