Womens silk spinners and twisters of Bihar lost their jobs once the Chinese and Korean silk yarn entered the market. This is due to _____.

Globalization

The correct answer is Option 4: Globalization

The entry of Chinese and Korean silk yarn into the Indian market led to the loss of jobs for local women silk spinners and twisters in Bihar. This situation is a direct result of globalization, which refers to the increasing interconnectedness of economies through free trade, foreign competition, technology transfer, and cross-border movement of goods and services.

In this case, the global flow of cheaper or more competitive silk yarn from other countries displaced local traditional industries, affecting employment. This is a typical impact of globalization, where local producers face stiff competition from international markets.

Why not Liberalisation?

While liberalization and globalization are closely related, they refer to different processes. Liberalization primarily involves internal economic reforms within a country, such as reducing government control over industries, easing licensing rules, and allowing greater private and foreign investment in domestic markets. However, the situation described—where women silk spinners and twisters in Bihar lost their jobs due to the entry of Chinese and Korean silk yarn—relates specifically to the impact of foreign goods entering the Indian market. This is a direct outcome of globalization, which refers to the increased interconnectedness of economies through the cross-border flow of goods, services, and competition. Since the displacement of local workers occurred due to competition from foreign imports, not because of internal deregulation, the correct answer is globalization, not liberalization.