Which of the following statement is correct in the context of the impact of globalisation on the Indian industry?
Answer & explanation
Correct answer: option 1
The correct answer is option 1: it is seen as creating conditions for the free movement of goods and services from foreign countries that adversely affect the local industries and employment opportunities in developing countries.
Option 2: A developing country like India still does not have the access to developed countries’ markets because of high tariff barriers. Incorrect. A developing country like India still does not have the access to developed countries’ markets because of high non-tariff barriers.
Option 3: Developing countries are compelled to open up their economies to greater flow of goods and capital from developed countries and rendering their industries vulnerable to exported goods. False. In a globalised world, developing countries are compelled to open up their economies to greater flow of goods and capital from developed countries and rendering their industries vulnerable to imported goods.