Name: Liberalisation Entails Removing Trade Barriers
Uploaded: 2019-07-19
Duration: 4 min 53 s
Description: Liberalisation is an economic practice that allows countries to trade freely. Watch this video to see why this idea was so appealing to the Indian government.

Question

Explain the benefits of globalization.

Accepted Answer

Globalization has contributed remarkably to the development and growth of a nation. Some benefits of globalization are as follows:

Employment: The process of globalization has increased employment opportunities. Export processing units are established all over the world, which have created employment for thousands of people. The multinational companies of the west are providing employment opportunities to the people by outsourcing employees.

Compensation: There has been an increase in the amount of payment compared to the domestic companies. The main reason is that domestic or home companies lack skills and knowledge compared to multinational companies. An increase in compensation has led to changes in the management structure of the companies too.

Standard of living: With the emergence of globalization, there has been a change in people's standard of living. The difference in the purchasing behavior of people has increased their standards of living of people. The progress and development of business have raised the standards of living of people.

Increased investment: Globalization has led to an increase in investments across the countries. This has led to companies investing and opening their branches in different countries across the globe. The increase in investment across borders has enhanced the welfare of both countries.

Development of infrastructure: Globalization has led to technological advancement that has helped improve the infrastructure of countries.

Foreign exchange reserves: With the help of globalization, there is a constant flow of capital in the international financial flows. This capital flow helps countries build foreign exchange reserves.

Explain the benefits of globalization.

Important Questions on Economic Liberalization and Globalization

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