Question

Government can make globalization fair by ______.
a. Increasing competition
b. Increasing employment
c. Implementing the labour laws
d. Imposing trade barriers

Answer 1

Hint: The process of integration of the national economy with the economy of the rest of the world is known as globalisation. Such an integration can take place through various exchanges, be it that of human resources or of goods and services. Ways through which globalisation is introduced in a country include removing quantitative restrictions or quota, and reducing tariffs.

Complete answer:
Let us have a look at all the options.
Option a: One of the main outcomes of globalisation is increased competition. This is because as foreign producers are allowed to compete with the domestic producers, there will be greater competition to have a share in the market. For consumers, it would mean higher supplies and lower prices. Thus, increasing the competition further would do no good. Hence, this is not the correct option.
Option b: Globalisation is ideally supposed to generate employment. As foreign investors start investing in the domestic economy and jobs are being outsourced, jobs should ideally increase. So, it doesn’t look like the direct way the government can have to make globalisation fairer. Thus, it is not a correct option either.
Option c: One way through which the government can ensure fairness in the economy is by making inclusive policies. If such labour laws are implemented which ensure prevention of exploitation of the workers and a minimum wage for them, the effects of globalisation can be much fairer. Thus, this is the correct option.
Option d: The concept of globalisation itself is to open up the national borders to the foreign economy. Imposing trade barriers would defy the purpose of globalisation altogether. Thus, this is incorrect.
Hence, the correct answer is option, ‘c. Implementing the labour laws’.

Note: Globalisation is essentially accompanied by the increased role of private actors in the economy. While the state’s role becomes very limited, it might give way to exploitation of the worst off. However, the government does have the powers to frame laws to ensure labour rights are preserved.