Question

Write short answers of the following.

What are the advantages of globalization?

Answer 1

The following points highlight the advantages of globalization in India:

i. Raises Foreign Capital - Globalization enables countries to attract foreign capital as well as updated technology.

ii. Quality Enhancement - Since the goods are freely available, the domestic producers are required to improve the quality of their products to survive in the market.

iii. Employment Generation - As a result of globalization, employment increases due to the increase in demand for domestic goods in international markets, setting up of MNCs in domestic countries, etc.

iv. Reduce Prices - As a result of increased competition, producers will be forced to reduce the prices of their goods and services and keep the prices at a competitive level.

v. Advantage of Abundant Resources - It enables countries to take advantage of their abundant resources by shifting the pattern of trade in favour of goods that use more of those resources.