What is a political consequence of globalisation?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Erosion of state capacity

Option (1) Erosion of state capacity — Correct. At the most simple level, globalisation results in an erosion of state capacity, that is, the ability of government to do what they do. The welfare state gives way to a minimalist state, and multinational companies reduce the capacity of governments to take decisions on their own.

Option (2) The increased role of social institutions in determining economic policies across the world. — Incorrect. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities, not social institutions.

Option (3) The rise of a uniform culture — Incorrect. This is a cultural consequence, also called cultural homogenisation.

Option (4) McDonaldisation of the world — Incorrect. This too is a cultural consequence: cultures buying into the dominant American dream.

NCERT (2025-26): “Political Consequences … How does globalisation affect traditional conceptions of state sovereignty? There are at least three aspects that we need to consider when answering this question. At the most simple level, globalisation results in an erosion of state capacity, that is, the ability of government to do what they do. All over the world, the old ‘welfare state’ is now giving way to a more minimalist state 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. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities. The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.…”