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 to promote globalisation by allowing free trade between nations.
2. The government reduces import and export taxes because lower taxes make international trade significantly easier and more cost-effective.
3. 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.