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What is a potential disadvantage of globalization for developing economies?
Question

What is a potential disadvantage of globalization for developing economies?

A.

Job creation

B.

Export growth

C.

Unequal income distribution

D.

Transfer of technology

Correct option is C


The correct answer is (C) Unequal income distribution
Explanation:
• Globalization benefits skilled workers and large companies more, leaving unskilled groups behind.
• This widens the rich–poor gap.
• Developing countries often face job insecurity in small-scale sectors.
Information Booster:
• India opened its economy in 1991 (LPG reforms).
• Globalization is associated with FDI, trade liberalization, outsourcing.

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