A. Increase in competition would make companies more cost & quality conscious and innovative.
B. An open economy spurs innovation with fresh ideas from abroad.
C. Liberalisation & global competition enhances consumer choice and consumer surplus.
D. Developing countries could be very vulnerable to the harmful effects of globalisation.
E. Globalisation opens up enormous domestic and global opportunities for firms in developing countries.
Choose the correct answer from the options given below:
The question asks to identify the benefits of globalisation from the given statements.
Globalisation Benefits Analysis
We need to evaluate each statement to determine if it represents a positive outcome or advantage of globalisation.
- Statement A: Increased competition drives companies to be more cost-conscious, improve quality, and innovate. This is a key benefit of globalisation.
- Statement B: An open economy allows for the influx of new ideas and technologies from abroad, stimulating innovation. This is a benefit.
- Statement C: Liberalisation and global competition provide consumers with a wider array of choices and potentially lower prices, increasing consumer surplus. This is a benefit.
- Statement D: This statement highlights potential vulnerabilities and harmful effects for developing countries, which is a drawback or risk, not a benefit.
- Statement E: Globalisation creates new market access and opportunities for businesses, particularly in developing countries, facilitating growth. This is a benefit.
Conclusion on Benefits
Based on the analysis, statements A, B, C, and E describe benefits of globalisation. Statement D describes a potential negative consequence.
Identifying the Correct Option
The correct answer should include statements A, B, C, and E only. Examining the provided options:
- A, B, C & D Only (Incorrect - includes D)
- C, D & E Only (Incorrect - includes D, misses A & B)
- B, C, D & E Only (Incorrect - includes D)
- A, B, C & E Only (Correct - includes all identified benefits)
Therefore, the option listing A, B, C, and E is the correct choice.
Important Questions from Business Environment and International Business
- When an employee is transferred to another country and is assigned a salary based on the base salary for that position in the country where he will work, the employer has used a _____ salary plan.
- Assertion (A) : The perceived risk of operating a domestic firm in international environment is much higher.
Reason (R) : The international environment is more volatile and the domestic firm generally does not have full information about the environment. - Match List – I (TNCs) with List – II (Products) using the codes given below :
List – I (TNCs) List – II (Products) a. Marcopolo i. Banking b. Bombardier ii. Oil c. Citygroup iii. Bus d. Bridas iv. Railway Coaches
Codes : - According to eclectic theory of foreign direct investment, foreign direct investment will occur under which of the following conditions when they are to be uniquely combined?
A. Ownership
B. Location
C. Market power
D. Internationalization
E. Vertical integration
Choose the most appropriate answer from the options given below : - Which of the following are included in Foreign Direct Investment?
A. Wholly owned subsidiary
B. Joint venture
C. Investment in GDR
D. Acquisition
E. Investment by FIIs
Choose the correct answer from the options given below:
