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:

• The government reduces trade barriers to promote globalisation by allowing free trade between nations.
• The government reduces import and export taxes because lower taxes make international trade significantly easier and more cost-effective.
• The government removes restrictions on foreign investment, which is a key factor in globalisation as it encourages foreign companies to invest in the local economy.