Question

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

1. Government reduces trade barriers.
2. Government reduces competition among producers.
3. Government reduces import and export taxes.
4. Government removes restrictions on foreign investment.

Options

• Only I, II and III are correct.

• Only II, III and IV are correct.

• Only I, III and IV are correct.

• Only I, II and IV are correct.

Answer 1

Only I, III and IV are correct.

Explanation:

1. The government reduces trade barriers (This promotes globalisation by allowing free trade)
2. The government reduces import and export taxes (Lower taxes make international trade easier.)
3. The government removes restrictions on foreign investment (Encouraging foreign investment is a key factor in globalisation.)