Question

discuss the positive and negative impact of globalization on developing countries business development

Answer 1

Effect of globalisation resulted into positive impact on developing countries are as follows-

A. It has led to a large number of foreign direct inflows into the country

B. It has also lead to large number of merger and acquisition in the whole country with foreign companies

C.it has also lead to widespread spurt in the overall foreign currency Reserve of these developing countries

D. It is also lead to high level of international participation in the domestic stock markets and it has led to improvement in the stock market as well fair price discovery.

Disadvantages of of globalisation on domestic developing countries are as follows-

A. High level of competition which has shutdown many domestic companies.

B. Foreign companies and foreign nationals have acquired the control of various domestic companies

C.there have been formation of cartels from foreign institutional investors to impact the domestic stock markets.

D. Tracking of foreign money cannot be done with domestic developing country mechanism.