Choose the correct statements about the political consequences of globalisation.

(1) It erodes the ability of the government to do what they do.
(2) The state performs the earlier welfare functions even better.
(3) Minimalist states are created.
(4) People's welfare becomes the prime determinant of economic and social priorities.

1 and 3

The correct answer is Option 4 - 1 and 3

(1) It erodes the ability of the government to do what they do.
(3) Minimalist states are created.

Political Consequences of Globalisation:

At the most simple level, globalisation results in an erosion of state capacity, that is, the ability of government to do what they do (Statement 1). All over the world, the old ‘welfare state’ is now giving way to a more minimalist state (Statement 3) that performs certain core functions such as the maintenance of law and order and the security of its citizens. However, it withdraws from many of its earlier welfare functions directed at economic and social well-being (Correct statement 2). In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities (Correct statement 4). The entry and the increased role of multinational companies all over the world lead to a reduction in the capacity of governments to take decisions on their own.