“Globalisation involves a stretching of social and economic relationships throughout the world.” What process facilitates this?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → The Economic Policy of Liberalization
Option (1) The Electronic Economy — Incorrect. The electronic economy lets funds move across the world with the click of a mouse. It underpins economic globalisation, but it is a tool of the global economy, not the policy that pushed India into it.
Option (2) Transnational corporations — Incorrect. Transnational corporations produce and sell in more than one country. They are part of the globalised economy, but they are businesses, not the policy decisions the question points to.
Option (3) The Economic Policy of Liberalization — Correct. Globalisation involves a stretching of social and economic relationships throughout the world, and this stretching is pushed by certain economic policies. In India this process is termed liberalisation: the policy decisions taken since 1991 to open up the Indian economy to the world market.
Option (4) The Weightless Economy or Knowledge Economy — Incorrect. This describes the kind of products the global economy now rests on, information-based ones; it is a feature of the economy, not the policy that drives the stretching.
NCERT (2025-26): “a. The Economic Policy of Liberalisation Globalisation involves a stretching of social and economic relationships throughout the world. This stretching is pushed by certain economic policies. Very broadly this process in India is termed as liberalisation. The term liberalisation refers to a range of policy decisions that the Indian state took since 1991 to open up the Indian economy to the world market.…” |