Question 42 of 46intermediate🔍 AnalyzeLong Answer5 marks

"The impact of globalisation has not been uniform." Explain this statement.

Correct Answer

The impact of globalisation has not been uniform. Not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities, while many others have not shared the benefits.

Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today enjoy much higher standards of living than was possible earlier.

Among producers and workers, the impact has varied. MNCs have increased their investments in India over the past 20 years in industries such as cell phones, automobiles, electronics, soft drinks, fast food, and services like banking in urban areas. In these industries and services, new jobs have been created, and local companies supplying raw materials to these industries have prospered.

However, while globalisation has benefited well-off consumers and producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.

Since globalisation is now a reality, the question is how to make globalisation more 'fair'. Fair globalisation would create opportunities for all and ensure that the benefits of globalisation are shared better.

Exercise: EXERCISES | Q: 6 | (Chapter: Page 19)
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Explanation

This answer addresses the 5-mark requirement by explaining both positive and negative impacts of globalisation. It covers: (1) benefits to well-off urban consumers, (2) benefits to skilled producers and workers through MNC investments, (3) negative impact on small producers and workers, and (4) the need for fair globalisation. The context clearly establishes that impacts vary based on education, skills, and wealth.