Which among the following is not an economic consequence of globalization?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Increase in restrictions imposed by different countries on allowing the imports of other countries.
Option (1) The increasing role of international institutions along with other actors in shaping economic policies across the world. An economic consequence (Incorrect). Economic globalisation draws attention to the role of institutions like the IMF and the WTO in determining economic policies, and it involves many other actors too.
Option (2) Greater economic flows among different countries of the world An economic consequence (Incorrect). Economic globalisation usually involves greater economic flows of commodities, capital, people and ideas.
Option (3) Guarding of borders with visa policies by developed countries An economic consequence (Incorrect). Movement of people has not grown to the same degree, because developed countries have carefully guarded their borders with visa policies to protect the jobs of their own citizens.
Option (4) Increase in restrictions imposed by different countries on allowing the imports of other countries. Not an economic consequence (Correct). It is the reverse. Economic globalisation means greater trade in commodities across the globe, and that became possible because the restrictions imposed by different countries on allowing the imports of other countries have been reduced. More restrictions on imports would shrink these flows, so they would work against globalisation, not result from it.
NCERT (2025-26): “Economic Consequences … The mention of economic globalisation draws our attention immediately to the role of international institutions like the IMF and the WTO and the role they play in determining economic policies across the world. Yet, globalisation must not be viewed in such narrow terms. Economic globalisation involves many actors other than these international institutions. A much broader way of understanding of economic globalisation requires us to look at the distribution of economic gains, i.e. who gets the most from globalisation and who gets less, indeed who loses from it. 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 … But globalisation has not led to the same degree of increase in the movement of people across the globe. Developed countries have carefully guarded their borders with visa policies to ensure that citizens of other countries cannot take away the jobs of their own citizens.…” |