Read the given passage carefully and answer the next five questions.
In many ways it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation and also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly, these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both State regulation and State subsidies. The existing process of Globalisation in this sense does have a political vision as much as an economic vision.
What is the economic measure that accompanied the collapse of the socialist world and the advent of Globalisation?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Neo-liberal measures
Option (3) Neo-liberal measures — Correct. The collapse of the socialist world gave a specific approach to the economic policies behind globalisation, and these changes are often termed neo-liberal economic measures. They give a free reign to market forces, as liberalisation did in India.
Option (4) Protectionist measures — Incorrect. Protectionist measures shield home industry from foreign competition with duties and quotas. Neo-liberal policies do the reverse: they remove such barriers and open the economy to the world market.
NCERT (2025-26): “Globalisation and Political Changes … In many ways it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation. And also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both state regulation and state subsidies. The existing process of globalisation in this sense does have a political vision as much as an economic vision.…” |