Give an account of the changing role of state in the light of Globalization. 1+1+1+1+1+1

CBSE Sample Question Paper, Class 12 Accountancy Term 2 Question - Give an account of the changing role of state in the light of Globalization. 1+1+1+1+1+1

Give an account of the changing role of state in the light of Globalization. 1+1+1+1+1+1

Ans.
(a) Globalization results in an erosion of state capacity, i.e. the
ability of government to do what they do.
(b) All over the world, the old welfare state is now giving way to a
more minimalist state that performs certain core functions, such as, the maintenance of law and order and the security of
its citizens.
(c) The entry and the increased role of multinational companies all
over the world leads to a reduction in the capacity of government to take decisions on their own.
(d) Globalization has also reduced the power of states to decide
national and foreign policy voluntarily. They have been forced
to follow the policies and decisions of international organizations.
(e) There has been a change in the role of the state in making and
implementing strict rules of import-export. Because
globalization is based on the concept of rapid flow of people,
things and ideas. Therefore, the barriers to permits, licenses
etc. have been reduced, due to which the role of the state has
also been reduced.
(f) In some respects state capacity has received a boost as a
consequence of globalization, with enhanced technologies
available at the disposal of the state to collect information
about its citizen. With the information, the state is better able
to rule, not less able.