Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> How is globalization a threat to small-scale industries in less developed countries?

• A. Developed countries dump cheaply-priced products in less developed countries, driving small businesses out of the market.
• B. The companies of developed countries buy small businesses of less developed countries and then rule the market.
• C. Small businesses cannot afford hi-tech machinery to produce better quality products and reduce cost of production.
• D. The companies from other countries might take away employees of the small businesses by offering them more salaries.

Answer 1

Answer: (A), (C)

Small businesses cannot afford hi-tech machinery to produce better quality products and reduce cost of production.

Developed countries flood the markets of underdeveloped and developing countries with products priced cheaply and produced by hi-tech machinery. Hence, they earn more by selling goods to a large number of customers. But small-scale industries in underdeveloped and developing nations cannot compete with their pricing, and may gradually go out of business. The developed countries become wealthier at the cost of underdeveloped nations, creating an unequal distribution of wealth.