Question

What role played by globalisation had an adverse impact on the economy?

• A. The variety of products available in the market was increased.
• B. Foreign capital investment was increased.
• C. Domestic producers could earn more due to increased exports.
• D. Small producers could not compete with international private players.

Answer 1

The correct option is D Small producers could not compete with international private players.

As an outcome of globalisation, big international companies entered the Indian market. Such companies with huge capital were capable of manufacturing in large scale. It led to a fierce competition in the market. Eventually, big players drove out small producers from the market. As a result, income disparity was on the rise, having a great impact on the economy.