Social Science (087) — AI-generated practice question

Effect on Bangladeshi consumers: Indian cotton fabric will become available at lower prices in Bangladesh, increasing consumer choice and improving their standard of living. This happens because greater competition among producers — both local and foreign — drives down prices and improves quality, benefiting consumers.

Effect on Bangladeshi fabric producers: Local Bangladeshi fabric producers will face intense foreign competition and may lose business or be forced to shut down. Unable to match cheaper Indian prices, their profits will fall and workers may lose jobs, similar to how trade barriers protect domestic industries from such competition.

Source: Globalisation and the Indian Economy, Chapter 4 — Impact of Globalisation; Liberalisation of foreign trade and foreign investment policy

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• The textbook directly states: "Globalisation and greater competition…has been of advantage to consumers…greater choice…lower prices."
• For producers, the toy/trade barrier example shows that without protection, cheaper foreign goods hurt local producers — apply the same logic here.
• Examiners want two distinct effects (one per stakeholder) with a reason for each. Avoid mixing them up.
• Key terms to use: competition, lower prices, consumer benefit, domestic producers, trade barrier.