Question

Answer the following question:
Explain any five effects of globalization.

Answer 1

Consumers benefit from globalization due to the following reasons:

• They benefit from the lower prices
• better quality of products arising from increased competition
• increases the purchasing power of an individual
• best practices of production get disseminated across political boundaries.

The following are the negative impacts of globalization:

1. Low wages and long working hours in potentially hazardous conditions due to the requirement of cost-effective production.
2. Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.
3. Multinational companies are prone to shift their centers of production in accordance with the benefits they receive.