Question

Statement A: Globalisation has led to a rise in deindustrialisation.

Statement B: Globalisation has boosted the flow of investments.

Options

• Both statements A and B are true.

• Both statements A and B are false.

• Only statement A is true.

• Only statement B is true.

Answer 1

Both statements A and B are true.

Explanation:

As multinational companies expand, local industries often struggle to compete, leading to closure of small-scale units and deindustrialisation in some regions. Globalisation encourages Foreign Direct Investment (FDI) and portfolio investments, increasing capital flow into different countries, especially in emerging markets.