Question

What are the negative effects of liberalisation and globalisation on business and industry in India.

Answer 1

Negative effects of liberalisation and globalisation are:

(i) Tremendous redistribution of economic power and political power leads to destabilising effects on the economy.

(ii) A rapid increase in technology forces enterprises to adapt to changes, or close their businesses.

(iii) Competition has increased for Indian firms.

(iv) Threat from multinational corporations.

(v) Acquisitions and mergers are increasing day-by-day.