Question

Read the following statements for stimulating the process of globalization and choose the correct options:
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:

Globalization thrives on liberal economic policies—focus on openness and integration.

Answer 1

The Correct Option is C

Globalization is promoted by policies that open up the economy, such as reducing trade barriers, lowering import-export taxes, and removing restrictions on foreign investment. However, reducing competition among producers goes against the principle of globalization, which encourages more competition and market integration.