Reading (C10)

Globalization

Globalization is the way to open businesses, improve technological growth, economy, etc, at the international level for all countries. It is the way in which manufacturers and producers of the products or goods sell their products globally without any restriction. It provides huge profits to the businessmen as they get low cost labour in poor countries easily. It provides a big opportunity to the companies to deal with the worldwide market.

Globalization helps to consider the whole world as a single market. Traders are extending their areas of business by treating the world as a global village. Earlier till the 1990s, there was a restriction on importing certain products which were already manufactured in India like agricultural products, engineering goods, food items and toiletries. However, during the 1990s there was a pressure from the rich countries on the poor and developing countries to allow them to spread their businesses by opening their markets. In India the globalization and liberalization process was started in 1991.

After many years, globalization brought about a major revolution in the Indian market when multinational brands came to India and started delivering a wide range of quality products at cheap prices. Prices of good quality products came down because of the cutthroat competition in the market.

Globalization and liberalization of the businesses in India have flooded the market with quality foreign products but has affected the local Indian industries adversely to a great extent resulting in the job loss to poor and uneducated workers. Globalization has been a bonanza for the consumers, however, a loss to the small-scale Indian producers.

Globalization has had some very positive effects on the Indian consumer in all sectors of society. It has affected the Indian students and education sector to a great extent by making study books and a lot of information available over the internet. Collaboration of foreign universities with the Indian universities has brought about a huge change in the field of education.

Globalization of trade in the agricultural sector has brought varieties of quality seeds which have disease resistance property. However, it is not good for the poor Indian farmers because the seeds and agricultural technologies are costly.

It has brought about a huge revolution in the employment sector by the spread of businesses like cottage, handloom, carpet, artisan carving, ceramic, jewellery, and glassware etc.

Attempt any eight of the following questions:

(a) What is globalization?

(b) Write any two advantages of globalization.

(c) What was the pressure from the rich countries in the 1990’s?

(d) What is the effect of multinational brands entering the Indian market?

(e) How are the prices of quality products affected due to globalization?

(f) How have the foreign products affected the local industry adversely?

(g) What has been the impact of globalization on the Indian students?

(h) Why has globalization had a negative effect on the poor Indian farmer?

(i) How has the cottage industry benefited from globalization?

Answer

a)

  • way to open businesses at the international level
  • improve technological growth at the international level
  • improve economy at the international level
  • way in which manufacturers and producers sell their products globally without any restriction

b)

  • provides huge profits to businessmen as they get low cost labour in poor countries
  • provides big opportunities to companies to deal with the worldwide market
  • helps to consider the whole world as a single market

c) pressure on poor and developing countries to allow them to spread their businesses by opening their markets

d) started delivering a wide range of quality products at cheap prices

e) cheaper products, prices come down

f) loss of jobs, loss to the small-scale Indian producers

g)

  • availability of new and latest study books
  • availability of information over internet
  • collaboration with foreign universities

h) costlier seeds, costlier agricultural technologies

i) boost in employment, huge revolution, spread of businesses