CBSE Class 11-commerce Answered

Developing countries such as India is forced to open up its economy to greater flow of goods and capital from developed countries. This caused the domestically produced goods to compete with the imported goods. Globalisation has paved the way for the movement of goods and services from foreign countries, and thus the local industries productivity level has been reduced and access to markets in developed countries. Thus, the domestic countries were adversely affected in the reform period.