Chapter 20, Problem 8AA

To determine

Correct word to complete the sentence.

Explanation of Solution

The correct option is ‘Appropriate’.

Globalization refers to the interaction between different countries and regions. It means the exchange of goods and services, technologies, capital, and laborers, etc. all over the world.

Due to globalization, foreign investment comes in a country. It possesses some risk as well. Being dependent on foreign investment may be a risky thing because if the foreign investment flows out of the host country due to any unfavorable reason then the host country becomes volatile. Foreign investors only care about their profit and they can take out their investment at any time. So, the caution about foreign investment is appropriate. But due to the positive effects of globalization, the United States should not stop globalizing its economy.