On the basis of the above passage, the following assumptions have been made: In today’s global economy, 1. regulations are not effectively used to protect local markets. 2. Social and environmental concerns are generally ignored by the governments across the world while implementing the regulations. Which of the above assumptions is/are valid?

Passage

India’s economic footprint, given its population, still remains small compared to the US, the European Union or China. It has much to learn from other economies, yet must implement solutions that fit its unique circumstances. India especially needs an effective long-term regulatory system based on collaboration rather than the current top-down approach. Regulations seek desirable outcomes yet are repeatedly used as political tools to push one agenda or another. Often, regulations fail to consider impacts on jobs and economic growth — or less restrictive alternatives. Regulations may be used to protect local markets at the expense of more widely shared prosperity in the future. Additionally, regulations inevitably result in numerous unintended consequences. In today’s hyper-competitive global economy, regulations need to be viewed as ‘weapons’ that seek cost-justified social and environmental benefits while improving the economic well-being of most citizens.

QUESTION

CSAT

Medium

Comprehension

Prelims 2019

On the basis of the above passage, the following assumptions have been made:

In today’s global economy,

regulations are not effectively used to protect local markets.
Social and environmental concerns are generally ignored by the governments across the world while implementing the regulations.

Which of the above assumptions is/are valid?

Select an option to attempt

Explanation

Statement 1 is incorrect. The passage suggests that regulations may be used to "protect local markets at the expense of more widely shared prosperity in the future." This implies that while regulations could protect local markets, this might not always be the most effective approach for long-term prosperity. The assumption implies that regulations are not effectively used to protect local markets, but the passage doesn’t explicitly say they are ineffective at this. It rather implies that while they might protect local markets, they may harm future growth. Therefore, Assumption 1 is not fully valid, as the passage doesn't suggest that regulations don't protect local markets, but rather that they may have negative long-term consequences.

Statement 2 is incorrect. The passage talks about regulations being viewed as "weapons" that should seek "cost-justified social and environmental benefits." This indicates that social and environmental concerns should be considered, not ignored. However, it also highlights that regulations often fail to consider these factors or the impact on jobs and economic growth, suggesting that these concerns may sometimes be overlooked or not adequately addressed. This implies that while social and environmental concerns may sometimes be neglected, they are not universally ignored by all governments. Therefore, Assumption 2 is not fully valid either, as it generalizes the behavior of all governments without confirming this is the case everywhere.