Describe any five positive and negative
impacts of globalisation in India .
Answers
Answer:
The following are the positive impacts of globalisation on the Indian economy:
1) Increased foreign investment in India.
2) Greater cultural exchange because of greater movement of the people. This has greatly helped the tourism sector in India.
3) Opening up of the Indian markets to foreign goods.
4) The greater competition among companies leading to improvement of quality with reduction in prices of the products.
5) Access to newer technology and improved ways of production from the more advanced countries leading to efficiency in the local industries.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki M., 2004).
FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.