Question

Read the following statements for stimulating the process of globalization and choose the correct option: I. Government reduces trade barriers.
II. Government reduces competition among producers.
III. Government reduces import and export taxes.
IV. Government removes restrictions on foreign investment.

• A. Only I, II and III are correct.
• B. Only II, III and IV are correct.
• C. Only I, III and IV are correct.
• D. Only I, II and IV are correct.

Hint:

To stimulate globalization, reducing trade barriers and encouraging competition are key factors.

Answer 1

The Correct Option is C

The government can foster globalization by:- I. Lowering trade barriers to boost international trade,- III. Decreasing import and export taxes to ease the movement of goods,- IV. Eliminating restrictions on foreign investment to draw in foreign capital.
In contrast, II. Diminishing competition among producers does not support globalization.
Therefore, the correct choice is option (C).