What are the advantages and disadvantages of globalization in small scale industries in India?

Answer:

Answer

ADVANTAGES
1. Intergration of markets: Markets are interlinked- European Union
2. Cheaper Products for Consumer: Trainers are Cheap
3. Leads to Outsourcing in some cases which can lead to job loses: Moving call centers to India.
4. Lowering of international Bariers: Now European Union can Trade with ASEAN and NAFTA.
5. Providing jobs in LEDC's and help develop economy (less Economically Developed Countries)
6. Helps prevent market Saturation in a specific market: stops there being too much competitors in one place e.g too much call centres in UK, so move to India
7. Standardisation of product: the same products can be seen in some many places - e.g coke and McDonalds

DISADVANTAGES
1. Intense Competition
2. Widening of Gap between rich and poor countries
3. Harder for Smaller businesses to establish themselves
4. Exploitation of workers: Paying the workers in LEDC's a fraction of what would be paid in to workers in MEDCs.
5. Income generated in Host country is not always spent in the same country - money earned from supplying cheap call centres in India will not be spent in India but maybe in UK or US.
First answer by ID1358900138. Last edit by Shazzziiieee. Contributor trust: 3 [recommend contributor recommended]. Question popularity: 36 [recommend question].