Question

Read the following passage carefully and answer the question:

At the most simple level, globalization results in an erosion of state capacity, that is, the ability of government to do what they do. All over the world, the old 'welfare state' is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens. However, it withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities. The entry and the increased role of multinational companies all over the world lead to a reduction in the capacity of governments to make decisions on their own. At the same time, globalization does not always reduce state capacity. The primacy of the state continues to be the unchallenged basis of political community. The old jealousies and rivalries between countries have not ceased to matter in world politics. The state continues to discharge its essential functions (law and order, national security) and consciously withdraws from certain domains from which it wishes to States continue to be important. Indeed, in some respects, state capacity has received a boost as a consequence of globalization, with enhanced technologies available at the disposal of the state to collect information about its citizens With this information) the state is better able to rule, not less able. Thus, states become more powerful than they were earlier as an outcome of the new technology.

How have multinational companies affected the states?

पर्याय

• By Unemploying youth of that state.

• Reduction in the capacity of government to take decisions on their own.

• By critical internal security issues.

• All the above

Answer 1

Reduction in the capacity of government to take decisions on their own.

Explanation:

The entry and the increased role of MNCs all over the world reduce governments' ability to make decisions on their own.