Question
Explain the economic consequences of globalisation.
Solution
The economic consequences of globalisation are as explained below :
(i)Globalisation has increased trade in commodities across the globe. The restrictions imposed by different countries on the imports of other countries have been reduced.
(i)Globalisation has increased trade in commodities across the globe. The restrictions imposed by different countries on the imports of other countries have been reduced.
(ii) The restrictions on the movement of capital across countries have also been reduced. Thus, investors in rich counties can invest their money in other countries particularly developing countries, where they get better retuns.
(iii) Globalisation has led to spread of ideas such as internet and computer related services.
(iv) Globalisation has led to increase in the movement of people. For example, about 300.000 Indians are working in Silicon Valley in USA.
