Question

explain the impact of globalisation on Indian traders, consumers and producers

Answer 1

Globalization is the economic trend that began in the latter part of the 20th century. Southeast Asia embraced the free-market system, trade barriers were dismantled and free trade allowed competition to spread around the world. The benefits of globalization have been an increase in product variety for consumers, lower prices and improved quality of products, although some might debate the last benefit. The drawbacks have been a loss of U.S. jobs and manufacturing industries. Concerns remain about Third World worker safety and environmental conditions.





In a consumer-driven economy, people vote with their dollars. The level of U.S. imports is testimony to the consumers' acceptance of foreign-made goods. While many consumers give lip service to the desire to buy American-made products, most do not. Some consumers express concern about the working conditions of overseas workers. The fair trade movement is the result; fair trade items are produced by workers who receive larger and fairer compensation for what they produce. The internet, of course, is one of the driving forces of globalization. Consumers can bypass the local merchant and search the world to find the products the desire.



While the globalization trend has benefited consumers in many ways, it is not without drawbacks. Competition generally tends to create better-quality products, but that is not always the case. Also, foreign-made goods may not be subject to the same standards as American-made goods. And while the growth of product availability has given American buyers many more choices, the loss of jobs due to globalization has made stretching the consumer dollar very difficult for many.