Question : What challenge do South Asian countries face due to economic globalization?  
   

Option 1: Decline in traditional cultural practices  
   

Option 2: Increased vulnerability to global economic shocks  
    

Option 3: Decreased foreign direct investment  

Option 4: Reduction in regional trade agreements  

Question : The crowding-out effect refers to:

Option 1: A decrease in private investment due to an increase in government expenditure
   

Option 2: An increase in private investment due to an increase in government expenditure
  

Option 3: A decrease in government expenditure due to an increase in private investment

Option 4: An increase in government expenditure due to a decrease in private investment

Question : The crowding-out effect suggests that an increase in government expenditure leads to:

Option 1: A decrease in private investment
  

Option 2: An increase in private investment
 

Option 3: No change in private investment

Option 4: An increase in savings

Question : What is a positive impact of economic globalization on South Asia?  
     

Option 1: Decreased foreign investment  
      

Option 2: Increased regional isolation  
     

Option 3: Enhanced connectivity with global markets  

Option 4: Reduced cultural diversity  

Question : The multiplier effect refers to the:

Option 1: Increase in consumption due to an increase in income
  

Option 2: Increase in investment due to an increase in consumption
    

Option 3: Increase in income due to an increase in investment

Option 4: Increase in income due to an initial change in spending