Which of the following is not a dimension of Global economy?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Barter economy

Option (1) Liberalization — A dimension (Incorrect). Liberalisation is the range of policy decisions, taken in India from 1991, that opened the economy to the world market. It is the economic policy that pushes globalisation.

Option (2) Transnational corporation — A dimension (Incorrect). Transnational corporations are companies that produce goods or market services in more than one country, and they are among the main forces of economic globalisation.

Option (3) Globalisation of finance — A dimension (Incorrect). Mainly because of the information technology revolution, globally integrated financial markets carry out billions of dollars worth of transactions within seconds.

Option (4) Barter economy — Not a dimension (Correct). In a barter economy goods are exchanged directly for other goods, without money; grain may be swapped for cloth. Such exchange belongs to small, local economies. The global economy runs on money, capital flows and electronic transfers of funds across the world.

NCERT (2025-26): “a. The Economic Policy of Liberalisation … Globalisation involves a stretching of social and economic relationships throughout the world. This stretching is pushed by certain economic policies. Very broadly this process in India is termed as liberalisation. The term liberalisation refers to a range of policy decisions that the Indian state took since 1991 to open up the Indian economy to the world market.…”

“b. The transnational corporations … Among the many economic factors driving globalisation, the role of transnational corporations (TNCs) is particularly important. TNCs are companies that produce goods or market services in more than one country.…”

“e. Globalisation of finance … It should also be noted that for the first time, mainly due to the information technology revolution, there has been a globalisation of finance. Globally integrated financial markets undertake billions of dollars worth transactions within seconds in the electronic circuits.…”