Question

Identify the correct statements about globalisation.

1. Removal of barriers by the government.
2. Foreign companies are allowed to set up factories.
3. This has enabled all companies to increase their investments.
4. Has lessened foreign investment and foreign trade.

Options

• I and II

• II and III

• I and III

• II and IV

Answer 1

I and II

• Removal of barriers by the government.
• Foreign companies are allowed to set up factories.

Explanation:

• Governments remove barriers to efficient global trade as a result of globalisation.
• Globalisation enables foreign companies to establish factories all over the world.
• Foreign investment policies enabled multinational corporations to increase their investments.
• Import trade barriers reduce foreign investment and foreign trade.

Thus, Options I and II are correct.