Question

If India had continued its pre-1991 protectionist policies, which scenario would most likely occur?

• A. Faster inflow of foreign investment.
• B. Easy competition with global companies.
• C. Increased openness to the global market.
• D. Domestic industries shielded from international competition.

Hint:

Protectionism means shielding home industry.

Answer 1

The Correct Option is D

Step 1: Define protectionism.
It means using laws and barriers to guard home industry from foreign rivals.

Step 2: Imagine the result.
If the barriers stayed, foreign firms would find it hard to enter, and Indian firms would not face world rivals.

Step 3: Test the options.
Options 1, 2 and 3 each need an open economy, so they could not happen under protection.

Step 4: Choose.
Only option 4 is consistent with protection.

Step 5: Why the other options fail.
Option 1 says: Faster inflow of foreign investment.. This does not fit the idea we settled on, so it cannot be the answer.
Option 2 says: Easy competition with global companies.. This does not fit the idea we settled on, so it cannot be the answer.
Option 3 says: Increased openness to the global market.. This does not fit the idea we settled on, so it cannot be the answer.

Step 6: Quick check.
Read the chosen option again in full: Domestic industries shielded from international competition.. It agrees with the facts above, and each of the other three options clashes with them. So the answer stays the same after this second look.

Final Answer:
Option 4 is the likely scenario. \[ \boxed{\text{Option 4}} \]