AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
When a large economy withdraws from global trade or finance, it disrupts the entire interconnected system — showing that in interdependent economies, one major player's actions have far-reaching consequences for all others.
The examiner wants a single unifying principle drawn from both examples. The key idea from the chapter is that the three flows — trade, labour, and capital — are closely interwoven (Ch. 3, Section 2). China's withdrawal reduced trade flows; the US withdrawal of loans in 1928–29 triggered the Great Depression. Both show that interdependence means vulnerability: when one large economy pulls back, the ripple effects destabilise the whole global order. Avoid writing separate explanations for each episode — the question asks for the common principle.