Due to Globalisation, in place of the welfare state, what has become the prime determinant of economic and social priorities?

Market

The correct answer is Option 2 - Market

Due to Globalisation, in place of the welfare state, it is the market that has become the prime determinant of economic and social priorities.

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. 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 lead to a reduction in the capacity of governments to take decisions on their own.