Question

What is often called economic globalization usually involves greater economic flows among different countries of the world. Choose the correct statements from the following about the features of economic globalization.

1. The restrictions imposed by different countries on allowing the imports of other countries have been reduced.

2. The restrictions on the movement of capital across the countries have been increased.

3. Developed countries carefully guarded their borders with visa policies to ensure that citizens of other countries cannot take away the jobs of their own citizens.

1. 1 and 3 only
2. 2 and 3 only
3. 1 only
4. All the above

Answer 1

Correct Answer - Option 1 : 1 and 3 only

The correct answer is 1 and 3 only.

• The following are the economic implications of globalization:
  • It involves increased economic flows among various countries by enhancing trade in commodities among countries.

• The regulations on imports and movements of capital have also been minimized.
• However, globalization has not led to the same degree of increase in the movement of people across the globe.
• Developed countries have closely guarded borders with strict and carefully drafted visa policies thus ensuring that citizens of other countries cannot hamper the jobs of their citizens.