Coupon Accepted Successfully!


Growth of the economy

Globalisation of underdeveloped countries will
  • Improve the efficiency of resources
  • ƒReduce the capital output ratio
  • ƒIncrease labour productivity
  • ƒHelp to develop the export spheres and export culture
  • ƒIncrease the inflow of capital and updated technology into the country
  • ƒIncrease the degree of competition and give a boost to the average growth rate of the economy

Improve the efficiency of resources

It will help to restructure the production and trade pattern in an economy in which capital is scarce and labour is abundant in such a way so as to favour labour-intensive goods and techniques.
  • Use of better technology: Globalisation not only attracts foreign capital, but also paves way for the entry of updated technology.
  • ƒIncrease degree of competition: Entry of foreign competition and removal of trade barriers will lead to a reduction in prices and improvement in quality in the domestic economy.
  • ƒIntegrate different sectors of the economy: Integration of different sectors results in cheaper and high quality consumer goods being manufactured, increase in the employment opportunities etc.
  • ƒImprovement of the service sector: As a result of globalisation, the efficiency of banking and financial sectors will improve, in order to face the competition from foreign capital and foreign banks.

Test Your Skills Now!
Take a Quiz now
Reviewer Name