Question

Analyse the impact of globalisation on world economy

Answer 1

Globalisation is the process of rapid integration or interconnection between countries.It refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres .

#Positive impact on world economy:
a. Globalization has brought about increased inflow of foreign capital, it has widened the choice of consumers.

b. MNCs provide employment opportunities to the masses and local companies supplying raw material to these industries have also prospered.

c. It has brought about greater integration of economies. World seems like a big market , with availability of all brands everywhere.


# Negative impact:
a. The entire policy of globalization has been questioned on the grounds as to what is global about globalization.

b. Instead of integrating the communities it has benefited a certain section of a society.

c. It has rather widened the gap between the rich and the poor.

Answer 2

Globalization has brought benefits in developed and developing countries as well as some negative effects. The positive effects include a number of factors which are better and higher education, trade, technology, competition, investments and capital flows, employment, culture and organization structure. Foreign Direct Investment's impact on economic growth has had a positive growth effect in wealthy countries and an increase in world trade.

Another point is that, the globalised and developed countries have a comparatively lesser amount of corruption in them.