The Struggle for a Fair Globalisation – Long Answer Questions

Medium Complexity (Application & Explanation)

Answer:

Globalisation may increase growth but can create unequal opportunities and losses for some groups.
Government policies like tariffs on imports protect local industries and farmers from foreign competition.
Subsidies like the Minimum Support Price (MSP) in India help farmers get fair prices, even if global prices fall.
Investment in roads, ports, and power improves the ability of Indian producers to compete globally.
Labour laws and environmental regulations protect workers and the environment from exploitation.
For example, higher import duties once protected the Indian auto industry, helping it to develop before allowing more foreign competition.

Answer:

Fair trade practices ensure that all countries and producers compete on equal terms.
If rich countries subsidise their products heavily, their goods can be sold cheaper, hurting poorer countries’ producers.
Fair trade prevents “dumping,” where one country sells below cost to push others out.
For example, “Fair Trade” coffee and chocolate guarantee better prices and safe conditions for farmers in developing countries.
India’s anti-dumping duties on some Chinese steel and toys protect local manufacturers from unfair pricing.
Thus, fair trade aims for ethical, competitive, and sustainable global commerce.

Answer:

The WTO creates and enforces rules for global trade, aiming for free and predictable markets.
It resolves disputes—for example, if one country blocks imports unfairly.
WTO tries to promote open markets by pushing countries to lower their trade barriers.
It also sets global standards for issues like tariffs and product safety.
However, critics say the WTO sometimes favours rich countries, as these nations can pressure for rules that suit them.
For example, while telling India to lower tariffs, the US and EU keep subsidising their own farmers, which hurts Indian exports.

Answer:

Government can run skill development programs to train workers facing job loss due to foreign competition.
Provide easier loans and credit to small businesses, like the Mudra Yojana in India.
Offer social security schemes such as insurance, health benefits, and pensions for affected workers.
Support formation of cooperatives, such as AMUL, to help producers get fair prices and bargain collectively.
Invest in education and health, so people can pursue new opportunities.
These steps ensure everyone benefits from globalisation, not just the strong or wealthy.

Answer:

Spend on education and healthcare to prepare citizens for global job markets.
Promote local brands and products through campaigns like “Vocal for Local” and “Make in India.”
Set up Special Economic Zones (SEZs) to boost exports and create jobs.
Pass anti-monopoly laws so that small businesses are protected from large multinational corporations.
Provide support for small and medium enterprises (MSMEs) to compete internationally.
These actions help to make opportunities and profits of globalisation widely shared.

Answer:

Cheap imports may lower the price of Indian crops, causing farmers to lose income.
Many small farmers might struggle to survive amidst global competition.
The government could increase subsidies or maintain MSP for critical crops to support farmers.
Investment in farm technology and infrastructure can reduce costs and improve quality.
Start programmes to train farmers in new methods or value-added agriculture (like food processing).
So, while complying with WTO, the government can protect farmers from unfair losses.

Answer:

“Dumping” is when foreign companies sell products in another country below their production cost.
This makes local goods uncompetitive, causing loss of sales, closures, and unemployment.
Over time, the dumped products can dominate the market and destroy domestic industries.
Governments can impose anti-dumping duties or tariffs to raise prices of the dumped goods.
They can give subsidies and support to local manufacturers to help them modernise.
These actions ensure fair competition and the survival of local businesses.

Answer:

Joining the WTO can open up new markets, allowing more exports and access to modern technology.
It also gives the country a platform to settle trade disputes and play a role in making global rules.
But, WTO rules may require reducing tariffs and subsidies, making local industries face tough global competition.
Rich countries in the WTO often push their own interests through subsidies, which can harm poor-country farmers and small producers.
To benefit, the government should negotiate terms that protect key sectors while seeking new export opportunities.
Joining WTO offers growth chances, but also risks for vulnerable groups; balanced policies are essential.

Answer:

The government can organise retraining in new skills relevant to growing industries, like electronics or services.
Offer compensation and temporary unemployment benefits while workers transition.
Provide easy loans or grants if workers want to start small businesses.
Promote cooperatives where workers can pool their resources and earnings.
Society can support by choosing products from ethical and fair-trade brands that ensure good jobs at home.
Such comprehensive support helps workers adapt to change and share the benefits of globalisation.

Answer:

Fair Trade ensures that small producers in poor countries get a fair price for their products, like coffee, tea, or chocolate.
It improves working conditions by enforcing safety, banning child labour, and ensuring fair payments.
These products usually sell at a small premium, which goes back to supporting communities in developing countries.
Fair Trade educates consumers to support ethical production and shifts demand away from exploitative companies.
However, Fair Trade is still a small part of world trade; unless more companies and shoppers join, its impact is limited.
Still, Fair Trade is a positive step in reducing global inequalities and raising awareness among consumers.