Final answer:
The term for the worldwide interdependence of economies is (option 1) globalization, which creates a single world market and increases economic connectivity between nations.
Step-by-step explanation:
The worldwide interdependence of resource flows, product markets, and business competition that characterizes our economy is called globalization.
This process involves the integration of governments, cultures, and financial markets through international trade into a single world market and has both benefits and drawbacks.
While globalization can enable economic growth and cultural exchange, it also poses challenges, such as giving too much power to multinational corporations and affecting the political decisions of nations.
Globalization has increased the degree to which economies are interconnected, leading to a global marketplace where products, services, and assets are bought and sold across national borders.
This is also reflected in the reliance of countries on one another for goods and services that were once produced within their own borders. The law of comparative advantage explains the economic benefits of each country specializing in certain markets and then exporting its surplus to others.
Societies can organize their economies as traditional, command, or market-oriented, but most are a mix.
The evolution of globalization over the past few decades has significantly increased the interdependence of economies worldwide, changing the way businesses and workers from various countries interact within the global economic network.