Consider the following statements about globalisation:
(A) Since the late 1980s, India changed its economic policy from state-led development to liberalisation.
(B) Globalisation is a period in which the world becomes interconnected economically but not culturally or politically.
(C) A central feature of globalisation is the increasing extension and integration of markets around the world.
(D) Companies based in India provide high-cost services to customers in the developed West.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A and C only
(A) Since the late 1980s, India changed its economic policy from state-led development to liberalisation. — Correct. Since the late 1980s India moved from state-led development to liberalisation, and this shift opened the era of globalisation.
(B) Globalisation is a period in which the world becomes interconnected economically but not culturally or politically. — Incorrect. Globalisation links the world not only economically but also culturally and politically. Leaving out the cultural and political links reverses the point.
(C) A central feature of globalisation is the increasing extension and integration of markets around the world. — Correct. Markets around the world are being extended and joined together, so a change in one market can affect a market far away.
(D) Companies based in India provide high-cost services to customers in the developed West. — Incorrect. Companies based in India provide low-cost services and labour to customers in the developed West. Their low cost is the reason Western customers turn to them.
NCERT (2026-27): “A 4.3 … “A central feature of globalisation is the increasing extension and integration of markets around the world. This integration means that changes in a market in one part of the globe may have a profound impact somewhere else far away. For instance, India’s booming software industry may face a slump if the U.S. economy does badly (as happened after the 9/11 attacks on the World Trade Centre in New York), leading to loss of business and jobs here. The software services industries and business process outsourcing (BPO) industries (such as call centres) are some of the major avenues through which India is getting connected to the global economy. Companies based in India provide low-cost services and labour to customers located in the developed countries of the West. …” |