question_answer

How has foreign trade been integrating markets of different countries? Explain with examples.

Or

How do we feel the impact of globalization on our daily life? Explain with examples.

Answer:

(i) Foreign trade provides an opportunity for both producers and buyers to reach beyond the markets of their own country.

(ii) Goods travel from one country to another. There is a huge competition among producers of one country and producers of other country.

(iii) Competition among buyers also prevails because they have more choice of goods, over domestically produced goods.

(iv) With the opening of trade goods travel from one market to another and choice of goods on the market rises. Price of similar goods in two markets tend to becomes equal.

(v) Example: During Diwali season buyers in India have the option of choosing between Indian and Chinese lights and bulbs, for Chinese lights manufactures this provides an opportunity to expand their business.

Or

Impact of Globalization in our daily life:

(i) Transportation technology has made much faster delivery of goods across long distances possible and that too at lower rates.

(ii) The invention of computers, internet, mobile phones and fax has made contact with each other around the world quite easy.

(iii) New jobs have been created in industries which MNCs have invested, such as electronics, fast food, cell phones etc.

(iv) The prices of various products have come down due to competition among the producer manufactures.

(v) People are getting more employment because some Indian companies have become multinational themselves due to globalisation.