Question

Read the following statements for stimulating the process of globalization and choose the correct option: I. Government reduces trade barriers.
II. Government reduces competition among producers.
III. Government reduces import and export taxes.
IV. Government removes restrictions on foreign investment.

• A. Only I, II and III are correct.
• B. Only II, III and IV are correct.
• C. Only I, III and IV are correct.
• D. Only I, II and IV are correct.

Hint:

To stimulate globalization, reducing trade barriers and encouraging competition are key factors.

Answer 1

The Correct Option is C

To stimulate globalization, the government needs to: - I. Reduce trade barriers to encourage global trade, - III. Reduce import and export taxes to facilitate easy exchange of goods, - IV. Remove restrictions on foreign investment to attract foreign capital.
However, II. Reducing competition among producers does not promote globalization.
Hence, the correct answer is option (C).