question_answer

Explain any four economic consequences of Globalisation.

Answer:

Economic consequences of globalisation are as follows:

(i) Globalisation usually involves greater economic flows among the different countries. Some of these are volunteer and some are forced by the international institutes.

(ii) It has involved greater trade in commodities across the globe, the restrictions imposed by different countries on allowing the imports of other countries have been reduced.

(iii) Movement of capital across the countries have also been reduced in operational terms. It means that investors in the rich countries can invest their money in countries other than their own.

(iv) It has also led to flow of ideas across national boundaries which helps developed economies more and developing economies have to suffer.