CSEET · Economic and Business Environment · Global Environment
Which of the following is generally regarded as a positive impact of globalisation on a developing economy like India?
A commonly cited benefit is better access to foreign capital, modern technology and larger export markets. Globalisation increases competition and exposure to global shocks rather than removing them, and it does not guarantee equal income distribution, so those alternatives are incorrect.
- AGreater access to foreign capital, technology and larger export marketsCorrect
- BComplete insulation of domestic firms from foreign competition
- CGuaranteed rise in income equality across all regions
- DElimination of exposure to global economic shocks
Explanation
Globalisation widens access to foreign investment, technology and export markets. It does not shield firms from competition, does not guarantee equality, and actually increases exposure to external shocks, so the other options describe the opposite or unrealistic outcomes.
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