Which of the following statements related to globalization is/are correct? 1. It has resulted in the change of scale in economic activities. 2. End of Cold War facilitated globalization. 3. Flow of money in transnational corporations is discouraged. Selec

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Q: 40 (CAPF/2013)

Which of the following statements related to globalization is/are correct?
1. It has resulted in the change of scale in economic activities.
2. End of Cold War facilitated globalization.
3. Flow of money in transnational corporations is discouraged.
Select the correct answer using the code given below.

question_subject: 

General Knowledge

question_exam: 

CAPF

stats: 

0,32,18,32,8,3,7

keywords: 

{'globalization': [0, 0, 0, 5], 'facilitated globalization': [0, 0, 0, 1], 'transnational corporations': [0, 0, 0, 1], 'economic activities': [0, 1, 0, 2], 'cold war': [2, 0, 0, 0], 'scale': [1, 0, 2, 3]}

The correct answer is option 1: 1 and 2 only.

Let`s dissect each option to understand why it is correct or incorrect:

Option 1: 1 and 2 only. This option states that statement 1 and statement 2 are correct.

- Statement 1: It has resulted in the change of scale in economic activities. This is a correct statement. Globalization has led to an increase in the scale of economic activities as businesses now operate on a global scale, expanding their operations and reach.

- Statement 2: End of Cold War facilitated globalization. This is also a correct statement. The end of the Cold War in the late 20th century reduced political tensions and barriers between countries, making it easier for globalization to occur.

Option 2: 1 only. This option states that only statement 1 is correct. This is incorrect as statement 2 is also correct, as explained above.

Option 3: 2 and 3 only. This option states that statement 2 and statement 3 are correct. However, statement 3 is not correct. The flow of money in transnational corporations is encouraged in globalization as it allows for the efficient movement of funds across borders.

Option 4: 1, 2,