Which among the following statements are correct about the economic consequences of globalization?
(A) The economic flows among different nations of the world are involuntary and are all forced by international organizations.
(B) Globalization has reduced the restrictions on movement of capital across countries.
(C) Globalization has led to the adoption of similar economic policies by governments in different parts of the world and generated the same outcomes in all countries.
(D) Globalization has led to greater interdependence and integration between governments, businesses and ordinary people in different parts of the world.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B) and (D) only
(A) The economic flows among different nations of the world are involuntary and are all forced by international organizations. Incorrect. Economic globalisation involves greater economic flows among countries, but some of this is voluntary and some forced by international institutions and powerful countries; not all of it is forced.
(B) Globalization has reduced the restrictions on movement of capital across countries. Correct. The restrictions that countries imposed on imports have been reduced, and so have the restrictions on movement of capital across countries.
(C) Globalization has led to the adoption of similar economic policies by governments in different parts of the world and generated the same outcomes in all countries. Incorrect. Governments in different parts of the world have adopted similar economic policies, but this has generated vastly different outcomes in different parts of the world; the same set of policies do not lead to the same results everywhere.
(D) Globalization has led to greater interdependence and integration between governments, businesses and ordinary people in different parts of the world. Correct. What cannot be denied is the increased momentum towards inter-dependence and integration between governments, businesses and ordinary people as a result of globalisation.
NCERT (2026-27): “Economic Consequences … What is often called economic globalisation usually involves greater economic flows among different countries of the world. Some of this is voluntary and some forced by international institutions and powerful countries. As we saw in the examples at the beginning of this chapter, this flow or exchange can take various forms: commodities, capital, people and ideas. Globalisation has involved greater trade in commodities across the globe; the restrictions imposed by different countries on allowing the imports of other countries have been reduced. Similarly, the restrictions on movement of capital across countries have also been reduced.… Economic Consequences … In thinking about the consequences of globalisation, it is necessary to keep in mind that the same set of policies do not lead to the same results everywhere. While globalisation has led to similar economic policies adopted by governments in different parts of the world, this has generated vastly different outcomes in different parts of the world.… Economic Consequences … What, however, cannot be denied is the increased momentum towards inter-dependence and integration between governments, businesses, and ordinary people in different parts of the world as a result of globalisation.” |