Chapter 20, Problem 10AA

To determine

To explain: Relationship between telecommunication and global integration.

Explanation of Solution

Telecommunication: It refers to long-distance communication through electronic mode, using communication satellites and fiber-optic cables.

Global integration: It refers to the interdependence among countries between financial markets, trade of goods and services, technology, and telecommunication, etc.

Due to the improvement in telecommunication, global integration among countries has also increased. Improved telecommunication helps financial markets in trading stocks, bonds, foreign currencies, and commodities such as gold and silver, etc. via electronic medium. Today one can trade from all over the world due to improvement in telecommunication.

In the case of services also, one can take any advice from all over the world. For instance, a person from Japan can communicate with a doctor or lawyer from America using his computer or phone. Now, the world has become small and interconnected.