Question

Due to globalization, India imports steel from China, engines from South Korea, tyres from France, and seats from the USA. All these products are then assembled to make cars.

Analyse the above statement, and choose the correct benefit of globalization.

• A. Globalization gives options to consumers to purchase from a variety of goods and services.
• B. Due to globalization, consumers can buy similar products all around the world.
• C. Each country produces goods it specialises in and then exports it to another country where all the parts are assembled.
• D. Due to globalization, products travel in container ships, which reduces the cost of transportation of goods.

Answer 1

The correct option is C Each country produces goods it specialises in and then exports it to another country where all the parts are assembled.

Globalization leads to the setting up of companies at multiple locations across the world. But they do not manufacture all the products in the country in which they operate. They import parts of the product from the countries that specialise in their manufacture. They are then assembled to make the final product, which is then exported to other countries. This is how globalization promotes specialisation.