Question

Explain how the markets of today are different from the ones which existed two decades ago.

Answer 1

Answer:

Globalisation and expansion of foreign trade have resulted in the emergence of highly integrated and united markets. Some decades ago restrictions were placed on foreign trade and foreign investment. This was to protect the domestic producers from foreign competition as the competition from imports would not have allowed these industries to develop.

Globalisation and development of trade have resulted in the availability of a greater choice of goods in the market for the consumer. Globalisation is the interconnection between counties through the expansion of foreign trade and foreign investment. It helps in the integration of the markets in different countries. It will give a lot of opportunities and openings for domestic consumers to reach out beyond the domestic market. Consumers also have the choice to select commodities produced beyond the domestic markets. The prices tend to be equal in both the markets gradually. Thus, foreign trade widens the markets for consumers and helps in connecting the markets worldwide.

Globalisation has resulted in greater competition among the producers. Producers in the home countries compete with the foreign producers and products thus improving the quality of the goods and services produced. This greater competition has resulted in the improved standards of the products produced at a lower price. This increased quality of products at lower prices has raised their standard of living significantly.

Answer 2

Change in markets

Explanation:

Two decades ago, India was not an open market. So there were various restrictions on foreign trade and investment. So domestic producers marketed their products in India and we consumed them. Foreign goods availability was very scarce and expensive. Due to lack of competition, we sometimes suffered low-quality goods.

But now, after globalization, foreign trade and investment has flourished in India. Foreign goods are produced with modern technology and hence good quality at low prices. Domestic producers are facing stiff competition and hence forced to produce at better quality and price. Consumers have a wider choice of goods.