Read the following statements for stimulating the process of globalisation and choose the correct option: I. Government reduces trades barriers II. Government reduces competition among producers III. Government reduces import and export taxes IV. Government removes restrictions on foreign investment. Options:
Option (C) is correct because globalisation is encouraged when the government reduces trade barriers, lowers import–export taxes and removes restrictions on foreign investment. These steps attract global companies and promote free flow of goods, capital and technology.
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The correct answer is (C). Globalisation expands when the government reduces trade barriers, lowers import and export taxes and removes restrictions on foreign investment. These policies make it easier for foreign companies to enter domestic markets, encouraging international trade and investment. On the other hand, reducing competition among producers (Statement II) would hinder globalisation by limiting economic freedom and innovation.