Which of the following pairs is correctly matched?

The correct answer is Option (2) → Business channels on stock markets and foreign investment flows - Globalisation of finance

Option (1) Computer software, media and entertainment products - Electronic economy — Incorrect. Software, media and entertainment products have their base in information, so they belong to the weightless economy. The electronic economy is the instant shift of funds across countries by banks, firms and investors with the click of a mouse.

Option (2) Business channels on stock markets and foreign investment flows - Globalisation of finance — Correct. Globalisation of finance means globally integrated financial markets that do billions of dollars of deals within seconds, with 24-hour trading. Business channels that track stock markets and foreign investment flows show this global link of money markets.

Option (3) Loans from the IMF given on certain conditions - Weightless economy — Incorrect. Loans from the IMF on set conditions are tied to the policy of liberalisation. The weightless economy has nothing to do with loans; its products have their base in information, such as software and internet-based services.

Option (4) Firms with one or two factories outside their home country - Knowledge economy — Incorrect. Firms with one or two factories outside their home country are small transnational corporations. A knowledge economy is one where much of the workforce works in design, development, technology, marketing, sale and servicing of goods.