SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One possible argument against globalisation is that it may
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lead to higher rates of domestic inflation.
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create short term structural unemployment in less efficient industries.
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result in increase deficits in Australia’s trade balance.
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lead to lower rates of economic growth.
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Explanation:
Detailed explanation-1: -Negative Effects An increase in hidden unemployment, a lack of new job openings, and a deterioration of real wage rates are the consequences of globalization in most developing economies, which were unable to adapt the new technologies.
Detailed explanation-2: -(i) Environmental degradation: Developed countries can take advantage of underdeveloped countries’ weak regulatory laws in terms of environmental protection. (ii) Unfair working conditions: Many multinationals have been accused of social injustice by exploiting labour in underdeveloped countries in order to cut costs.
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