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Question
Answer the following question:
Explain any five effects of globalization.
Solution
Consumers benefit from globalization due to the following reasons:
- They benefit from the lower prices
- better quality of products arising from increased competition
- increases the purchasing power of an individual
- best practices of production get disseminated across political boundaries.
The following are the negative impacts of globalization:
- Low wages and long working hours in potentially hazardous conditions due to the requirement of cost-effective production.
- Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.
- Multinational companies are prone to shift their centers of production in accordance with the benefits they receive.
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