Answer:


Globalization refers to the increasing interconnectedness and integration of economies, cultures, and societies worldwide. One of the key elements of this process is the reduction of barriers to international trade, including tariffs. Tariffs are taxes imposed on imported goods, and changes in tariff rates can have significant effects on global trade flows and economic growth.


In the context of globalization, the correct answer to the question is option 'B' - lowered. This is because one of the main objectives of globalization is to promote free trade and reduce barriers to international commerce. Lowering tariff rates is a key policy tool used to achieve this objective.

Benefits of Lowering Tariff Rates
Lowering tariff rates has several benefits, including:

1. Promotion of international trade: Lowering tariff rates encourages businesses to engage in international trade by reducing the costs of importing and exporting goods. This leads to increased trade volumes, which can stimulate economic growth and create employment opportunities.

2. Increased consumer choice: Lower tariffs enable consumers to access a wider range of goods at lower prices. This increases consumer choice and improves living standards.

3. Competitiveness: Lowering tariff rates can make domestic industries more competitive by exposing them to international competition. This can lead to increased efficiency, innovation, and productivity.

4. Foreign direct investment: Lowering tariff rates can attract foreign direct investment (FDI) by making a country's market more accessible and attractive to foreign companies. FDI can bring in new capital, technology, and expertise, which can contribute to economic development.


As part of the globalization process, tariff rates are generally lowered to promote free trade, increase consumer choice, enhance competitiveness, and attract foreign direct investment. Lowering tariffs has numerous benefits and is a key policy tool used to foster economic growth and development in an increasingly interconnected world.