Question : One negative impact of globalization is:
Option 1: Increased competition for domestic industries
Option 2: Preservation of local customs and traditions
Option 3: Reduction in economic interdependence
Option 4: Promotion of self-sufficiency
Correct Answer: Increased competition for domestic industries
Solution : The correct answer is (a) Increased competition for domestic industries
One negative impact of globalization is the increased competition it brings for domestic industries. As markets become more interconnected on a global scale, domestic industries often face competition from international companies that can offer similar products or services at lower prices or with greater efficiency.
Globalization opens up markets to foreign companies, allowing them to enter and compete in domestic markets. This can put pressure on domestic industries to adapt, innovate, and become more competitive in order to survive in the global marketplace. Some industries may struggle to keep up with the competition, leading to job losses, reduced profitability, and even the closure of businesses.
