Read the following passage and answer the questions that follow:
The process of globalization gathered pace primarily because of two factors reduced trade and investment barriers worldwide, particularly in developing countries and the rapid growth of technology which made global delivery of services possible. As governments worldwide tried to increase their international trade and attract greater investment into their domestic markets, they reduced barriers to trade and investment significantly. While this has ensured greater mobility of capital for investment, it has also, quite naturally, increased the power of investors’ vis-a-vis governments. Governments became reluctant to retain high barrier to trade and investment for fear investors will turn away and see more ‘investment friendly’ location elsewhere. They have also set harmonization of domestic regulation with global regulation as a way of attracting foreign investment into their economies. Governments have sometimes competed with each other to reduce regulation, or harmonize them with other states, leading to a situation where some regulations that are essential in a national context, to protect domestic producer or consumer interests, have been either removed or significantly amended. Globalization has had other negative effects as well. The impact of pollution and environmental degradation are felt outside national borders, both in the region and sometimes beyond. The rapid spread of newer diseases is facilitated by increased global travel. Such global problems require global solutions and such solutions often imply greater harmonization of policies at a global level.
Question 1
According to the passage, which of the following statement(s) is not true?
(A) The spread of global regulations and standards has eaten into domestic regulations.
(B) The global financial crisis and its aftermath have brought home investments.
(C) Governments have competed with each other to reduce regulation.
(D) Both (A) and (B)
Question 2
According to the passage, which of the following are the main reasons for the collective leap of globalisation?
1. Reduced trade
2. Reduction of investment barriers in developing countries
3. Growth of technology
(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Question 3
What happened when the governments tried to increase their international trade and attract greater investment?
1. Barriers to trade and investment were reduced
2. Investors turned only to developing countries
3. Capital for investment became free flowing
4. The power of governments increased
(A) 1 and 3 only
(B) 1, 2 and 3 only
(C) 2 and 4 only
(D) 1, 3 and 4 only
Question 4
Consider the following statements:
1. Governments have synced up domestic regulation with global regulation as a way of attracting foreign investment.
2. Governments removed or significantly amended regulation, leading to ignorance of the domestic consumer interests.
Which of the above statements is/are true?
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2
Question 5
Which of the following can be negative effects of globalisation?
1. Pollution
2. Environmental degradation
3. Spread of newer diseases due to people travelling everywhere
(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3
SOLUTIONS TO DAILY CSAT MISSION # 57
1.(C) 2.(D) 3.(A) 4.(B) 5.(C)
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