Question

What Are the Negative Effects of Liberalisation?

Answer 1

The negative effects of liberalisation are:

1. There will be a redistribution of economic and political power that will result in destabilisation of the economy.
2. There will be a rapid increase in new technologies that will result in industries being forced to adapt to changes or closing of the industries.
3. Increased competition for Indian firms due to the availability of cheap raw materials for production.
4. Threat to local businesses from multinational companies.
5. Increasing incidents of mergers and acquisitions.

Also see:

• MCQs on Liberalisation
• MCQs on Globalisation
• Advantages of Globalisation
• Objectives of Privatisation