Read the passage carefully and answer the following question.
What has been India's experience in resisting globalisation? Social movements play a role in helping people make sense of the world around them and finding ways to deal with matters that trouble them. Resistance to globalisation in India has come from different quarters. There have been left wing protests to economic liberalisation voiced through political parties as well as through forums like the Indian Social Forum. Trade unions of industrial workforce as well as those representing farmer interests have organised protests against the entry of multinationals. The patenting of certain plants like Neem by American and European firms has also generated considerable opposition.
The three principal benefits of globalisation are:
(A) It is expected to benefit the economies of both developed and developing countries.
(B) Globalisation leads to the free flow of international capital and finance.
(C) It is expected to increase competition and promote efficiency in the domestic economic sector.
(D) Globalisation leads to greater dependence of the developing Countries on the developed countries.
(E) The free flow of international capital results in powerful multinational corporations setting up business in the developing countries.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B), (C)
(A) It is expected to benefit the economies of both developed and developing countries — Correct. Advocates of economic globalisation argue that it brings greater economic growth and well-being for larger sections of the population, and that greater trade would benefit the whole world.
(B) Globalisation leads to the free flow of international capital and finance — Correct. The restrictions on the movement of capital across countries have been reduced, so investors in the rich countries can invest their money in other countries, including developing countries.
(C) It is expected to increase competition and promote efficiency in the domestic economic sector — Correct. Greater trade among countries allows each economy to do what it does best, which is the efficiency that open competition brings.
(D) Globalisation leads to greater dependence of the developing countries on the developed countries — Incorrect. This is a criticism of globalisation, not a benefit. Its critics fear that forced economic globalisation would lead to economic ruin for the weaker countries.
(E) The free flow of international capital results in powerful multinational corporations setting up business in the developing countries — Incorrect. This is not one of the benefits that the advocates of globalisation give. In India, the entry of multinationals is in fact what trade unions of industrial workers and farmers’ groups have organised protests against.
NCERT (2026-27): “Economic Consequences … Advocates of economic globalisation argue that it generates greater economic growth and well-being for larger sections of the population when there is de-regulation. Greater trade among countries allows each economy to do what it does best. This would benefit the whole world. They also argue that economic globalisation is inevitable and it is not wise to resist the march of history.… Economic Consequences … 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. In operational terms, it means that investors in the rich countries can invest their money in countries other than their own, including developing countries, where they might get better returns.… Economic Consequences … justice are worried about the extent of state withdrawal caused by processes of economic globalisation. They point out that it is likely to benefit only a small section of the population while impoverishing those who were dependent on the government for jobs and welfare (education, health, sanitation, etc.). They have emphasised the need to ensure institutional safeguards or creating ‘social safety nets’ to minimise the negative effects of globalisation on those who are economically weak. Many movements all over the world feel that safety nets are insufficient or unworkable. They have called for a halt to forced economic globalisation, for its results would lead to economic ruin for the weaker countries, especially for the poor within these countries.… India and Resistance to Globalisation … Trade unions of industrial workforce as well as those representing farmer interests have organised protests against the entry of multinationals.” |