Question

Given below are two statements: One is labeled as Assertion (A) and the other is labeled as Reason (R) : 

Assertion (A): Globalization raises the degree of independence resulting in lesser control over the domestic economy and loss of economic sovereignty. 

Reasons (R): Globalization promotes consumption cultures that may not be in consonance with the lifestyles and values of all the countries. 

In the light of the above Statements. choose the most appropriate answer from the options given below : 

1. Both (A) and (R) are correct and (R) is the correct explanation of (A)
2. Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
3. (A) is correct but (R) is not correct
4. (A) is not correct but (R) is correct

Answer 1

Correct Answer - Option 2 : Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)

Globalization:

• Globalization means the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
• Globalization raises the degree of independence resulting in lesser control over the domestic economy and loss of economic sovereignty. 
• Countries have built economic partnerships to facilitate these movements over many centuries.
• The term 'Globalization' gained popularity after the Cold War in the early 1990s.
• These cooperative arrangements shaped modern everyday life.

There are three types of globalization,

Type of globalization	Characteristics
Economic globalization	This type focuses on the unification and integration of international financial markets, as well as multinational corporations that have a significant influence on international markets.
Political globalization	This type deals mainly with policies designed to facilitate international trade and commerce. It also deals with the institutions that implement these policies, which can include national governments as well as international institutions, such as the International Monetary Fund and the World Trade Organization.
Cultural globalization	This type focuses on the social factors that cause cultures to converge, such as increased ease of communication and transportation, brought about by technology

Effects of Globalization:

• Globalization effects at three levels,
  • The individual level:  includes the way international influence affects ordinary people within a nation or region
  • The community-level: includes effects on local or regional organizations, businesses, and economies
  • The institutional level:  It includes effects to multinational corporations, national governments, and higher education institutions that have international students. At this level, decisions are made that affect the lower levels.

Therefore, Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)