He reached an agreement or compromise through 'negotiations' and he was able to 'prevent' or 'avert' a strike.
Self-reliance does not mean 'separation'. 'Segregation' is done on racial, religious or sexual grounds. Here we are talking about trade and economy. 'segregation' and 'with drawl' are inappropriate. Trade between communities need interdependence. Hence 'isolation' (to be alone or to be cut off) or 'seclusion' (keeping away from other people) are apt.
Punishment given children is usually in the form of physical (corporal) punishment.
The blank needs a word that contradicts goodness. Something that is opposite in meaning to the word 'goodness' can be 'reprobate' and 'incorrigible'. The rest do not contradict the word 'goodness'.
The desire for 'approbation', 'praise' or 'approval' is a deep-rooted instinct in any civilized man.