Small producers, have borne the negative impact as they have been forced to compete with MNCs. Some small producers who were hit the worst by MNC competition include dairy products, toys, vegetable oils, capacitors and batteries. They have either stopped production units or decreased the levels.Labour employed in the factories, have increased working hours with insecure jobs. MNC’s often employ labour on a temporary basis. They have lost legal protection because labour laws have been liberalised in favour of the MNC’s and big companies. Labourers in most companies have to work overtime to earn their livelihood.
The biggest benefit has been for the well-off urban middle-class consumers who can afford to buy a wider range of goods.MNC’s have posted tremendous profits and invested more and more in India since liberalization. MNC investment and production has largely been in the consumer goods sector like automobiles, electronic items, fast foods, cold drinks and mobiles. Some have also invested in sectors like power and banking.
Positive Impacts of Globalization1. Adopting to Globalization increase free trading opportunities between countries. This allows business organizations in developed countries to invest in developing countries.2. As the communication between the countries becomes open sharing of information became easier due to globalization. This has also contributed to the increase in speed of transportation of products.3. Countries joining together through globalization will remove the cultural barriers and make the world a global village. Globalization makes the countries adapt the factors that are beneficial in the long run.4. There is also possibility of less war between developed countries due to globalization.The negative Impact of Globalization are as follows.1.If the rules and regulations regarding protection of the environment is less in under developed countries, other developed countries can manufacture products that may harm the environment.2. As majority of big industries prefer cheap labour people in skilled and non skilled category will go for job in developed countries. Even though there are some negative impact due to globalization, the positive effects are dominating. It is also possible to reduce the various risks involved