Question

As things stand now, each country's financial system is being sustained and supported by its own government. Governments are primarily concerned with their own economies. This gives rise to financial protectionism, which threatens to disrupt and perhaps destroy global financial markets. So, regulations must become international in scope. Otherwise, global financial markets will be destroyed by regulatory arbitrage.
This questions has four alternative summaries.Choose the option that best captures the essence of the text.

• A. Global markets need global regulations but each nation is rooted in the principle of national sovereignty
• B. Financial protectionism damages the concept of globalisation
• C. Global markets need international guidelines for the smooth running of global trade
• D. Every country tries to protect its own financial interests

Answer 1

Answer: (C)

Global markets need international guidelines for the smooth running of global trade

Answer 2

The best summary for the text is: Global markets need international guidelines for the smooth running of global trade. So the correct option is (C)