Comprehension
Read the given passage carefully and answer the next five questions.
In many ways it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation and also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly, these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both State regulation and State subsidies. The existing process of Globalisation in this sense does have a political vision as much as an economic vision.
Question: 1

What does the term ‘liberalisation policy’ refer to in the given passage?

Updated On: Jan 16, 2026
  • Regulation of State subsidies
  • Regulation of market forces
  • Regulation of social welfarism
  • De-regulation of market forces
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The Correct Option is D

Solution and Explanation

The term ‘liberalisation policy’ signifies the de-regulation of market forces. This inference stems from the provided text, which characterizes liberalisation as a process favouring free enterprise and minimal state interference in market operations. The passage's critique of state regulation and subsidies supports the notion of reduced governmental controls, thereby allowing market mechanisms to determine economic results, which points to de-regulation.
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Question: 2

What is the central political vision reflected in the economic policies underpinning Globalisation?

Updated On: Jan 16, 2026
  • Free enterprise
  • State subsidies
  • Centralized power
  • State regulation
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The Correct Option is A

Solution and Explanation

The text examines the political changes subsequent to the dissolution of the socialist bloc, which spurred increased globalization. This transformation is marked by the implementation of neo-liberal economic policies, underscoring the political ideology of globalization. The passage identifies this ideology through the following:

  • The reference to neo-liberal economic measures signals an inclination towards policies advocating for limited government involvement in the economy.
  • Free enterprise is presented as the foundational political concept for these economic strategies, suggesting a conviction that unfettered market operations are optimal for both effectiveness and equity.
  • The passage notes a stance that is critical of both State regulation and State subsidies, indicating a rejection of governmental oversight or financial support.

Consequently, the core political philosophy driving the economic policies supporting Globalization is identified as Free enterprise.

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Question: 3

What is the economic measure that accompanied the collapse of the socialist world and the advent of Globalisation?

Updated On: Jan 16, 2026
  • Conservative measures
  • Welfare measures
  • Neo-liberal measures
  • Protectionist measures
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The Correct Option is C

Solution and Explanation

Following the dissolution of the socialist bloc and the rise of globalization, neo-liberal policies were adopted. These policies prioritize free market principles and reduced state involvement. Neo-liberalism champions economic strategies that favor free enterprise, positing that limited government oversight and reliance on market mechanisms will improve economic efficiency and equity.

The text emphasizes that the political transition concurrent with the collapse of socialist systems significantly propelled globalization. The adoption of neo-liberal economic approaches formed the bedrock of global economic policies during this period. This strategy involves diminishing state subsidies and regulations, thereby amplifying the influence of market forces.

  • Neo-liberalism promotes deregulation and the elimination of obstacles to trade and investment, cultivating a competitive landscape.
  • These policies express skepticism towards state intervention in economic affairs, preferring instead to let market dynamics dictate economic results.

Based on the provided text and its core tenets, the accurate designation for the economic measures associated with the collapse of the socialist world and the onset of globalization is: Neo-liberal measures.

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Question: 4

What major political change is highlighted in the passage?

Updated On: Jan 16, 2026
  • Collapse of Welfare State
  • Collapse of Capitalist State
  • Collapse of Socialist State
  • Collapse of trade protectionism
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The Correct Option is C

Solution and Explanation

The central political shift described in the text involves the disintegration of a specific political system, a development that facilitated globalization and the adoption of neo-liberal economic strategies. These strategies emphasize deregulation by the state and a reduced reliance on subsidies, prioritizing market mechanisms.

The phrase "collapse of the erstwhile socialist world" directly points to "Collapse of Socialist State" as the principal political transformation. This event was a catalyst for globalization and the subsequent embrace of neo-liberal economic approaches.

Consequently, the definitive answer is "Collapse of Socialist State".

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Question: 5

According to the passage, what is the political vision behind Globalisation?

Updated On: Jan 16, 2026
  • It supports State regulation
  • It is critical of State regulation
  • It advocates for Socialist State
  • It advocates for State subsidies
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The Correct Option is B

Solution and Explanation

To ascertain the political ideology underpinning Globalization as presented, a precise examination of the text is required. The passage states that globalization embodies a "political vision of free enterprise," consequently rendering it "critical of both State regulation and State subsidies." This implies a preference for market-driven methodologies over governmental oversight or intervention.

Following this analysis, let us assess the provided choices:

  1. Supports State regulation: This assertion is negated by the passage, which declares globalization's critique of state regulation.
  2. Critical of State regulation: This option precisely matches the passage's depiction of globalization's stance on state involvement.
  3. Advocates for Socialist State: This is erroneous, as the passage links globalization with neoliberal principles, diametrically opposed to socialist tenets.
  4. Advocates for State subsidies: This is also incorrect, given the passage's explicit statement that globalization opposes state subsidies.

Based on the preceding evaluation, the accurate response is: It is critical of State regulation.

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