GLOBALISATION

1. What is Globalization?
 Globalization is the flow of people, goods, ideas, and capital from one country to another.
 Transfer of ideas from one part to another
 Movement of goods from one country to another
 Transfer of capital from one country to another
 Movement of people from one country to another
2. “ Globalisation always need not to be positive , it can have some negative impacts”.
Substantiate with the help of examples.
 Some farmers committed suicide because their crops failed.
 They had bought very expensive seeds supplied by a multinational company (MNC).
 An Indian company bought a major rival company based in Europe, despite protests by some
of the current owners.
 Many retail shopkeepers fear that they would lose their livelihoods if some major
international companies open retail chains in the country.
 A film producer in Mumbai was accused of lifting the story of his film from another film made
in Hollywood.
 A militant group issued a statement threatening college girls who wear western clothes.
3. What is worldwide interconnectedness? What are its components?
 The worldwide interconnectedness implies to interlink the world through free flow of goods and
services, technology, ideas and people across the globe to extend globalisation.
 This contains three components:
 Capital Flow: It is the flow of resources through loans or business investments among the
countries.
 Trade Flows of Goods: It refers to exchange of goods among countries.
 Labour Flow: It refers to ‘Brain drain’ by creating favourable conditions for employment.
4. Explain the reasons of globalization/ Causes of globalization.
 Rapid Growth of Technology – Technology is advancing quickly, changing how we work,
communicate, and live.
 Variation in Level of Development – Different countries and regions develop at different
speeds, leading to economic and social gaps.
 Unequal Availability of Resources – Natural and financial resources are not evenly distributed,
causing inequalities.
 Cultural Diversity – People have different traditions, languages, and beliefs, making societies
diverse and unique.
5. Explain the consequences of globalization
Political consequences: Politically, globalization fosters cooperation between nations through
international organizations, impacting governance and policy-making.
Positive Impact
 Governance reform
 Integration of Technology in Governance
 Qualitative increase in the functioning of the government
 Transparency
 Simplification of governance
Negative impact
 End of the welfare state
 A welfare state is a state that works for the welfare of the people.
 Rise of the least interfering State
 The least interfering state is said to be that state which is limited only to the governance
system and does
 not pay much attention to the welfare of the people.
 Less government intervention in industries
Financial consequences/ Economic consequences : Economically, it involves the integration of
markets and trade across borders, leading to increased competition and investment flows.
Positive impact
 Increase in the pace of development
  Fast reach to new technology
 High utilization of resources
 Growth in employment
 Growth in quality due to market competition
Negative impact
 Rise of MNCs (Multinational companies)
 Multinational companies are companies that operate business in many countries at the same
time.
 The collapse of small industries
 Uneven development
 Difficult to do business due to increased competition
 Strict visa policy of developed countries
Cultural consequences: Culturally, it promotes the exchange of ideas, values, and lifestyles,
influencing societal norms globally.
Positive impact
 Openness of thought
 Development of mixed culture
 Improvement in the status of women
 Change in eating and living habits
Negative impact
 A great influence of American culture
 Loss of the culture of small countries
 Development of one-sided culture
6. How has technology contributed to globalisation?
Technology has contributed to globalisation in the following way:
1. The invention of the telegraph, the telephone and the microchip has revolutionised
communication.
2. The ability of ideas, capital, commodings and people to move more easilly from one part of the
world to another has been possible largely by technologies.
3. The technological advancement has encouraged export and imports of goods. This has resulted in
the increase in trade reasons between countries also contributed
to the growth of railways, ship, airways and future innovation for easier transportation of goods and
mobility of people.
4. Which is result technology has reduced the physical distance and increased inter connectedness
worldwide.
7. Does globalisation lead to cultural homogenisation or cultural heterogenisation or
both? Justify. Globalisation has affected our domestic life, food, drink, dress and ideas. It has
even affected people’s preferences leading to the fear to threatening world culture. This fear is true
upto some extent as globalisation has led to rise of a uniform culture known as cultural
homogenisation.
On the other hand, cultural homogenisation has contrary effects too. It makes to each culture more
distinctive and unique. This process is called cultural heterogenisation.
India and Globalization( from 1947 to 1991)
 India was a British colony before independence.
 In that era, raw materials were taken from India and manufactured into products in Britain and
sold back in India.
 After independence, India tried to end this dependence and decided that India would produce
all those things in
 the country that it was importing from outside.
 This arrangement lasted till about 1991 and after that India adopted a new economic policy.
 India's New Economic Policy (1991)
LPG
Liberalization
Liberalization means simplifying the policies of doing business i.e. Eliminating licenses and other
barriers.
Privatization
Privatization means by promoting the private sector, that is, giving the private sector an opportunity
to develop and remove the compulsion imposed on it.
Globalization
The uninterrupted flow of people, goods, capital, and ideas from one country to another is called
globalization.
After adopting this policy, there was an increase in the pace of development inside India and due to
the simplification of rules, businesses became bigger.
8. Resistance/Critique of Globalization
 Globalization has been criticized all over the world
 It has two sides
Left-wing
 Leftists are people who support the poor
 Leftists say that the condition of the poor has worsened due to globalization
 The government is running away from its responsibilities
 Simultaneously poor is getting poorer and poorer and rich is getting richer and richer
Right-wing
 Right-wing people who speak in favor of the rich.
 Right-wingers say that globalization is very necessary for rapid development and to bring the
condition of equal development all over the world.
9.What was argued at the world trade organization ministerial meeting regarding unfair
trading practices by the economically powerful state?
 In 1999, at the World Trade Organisation (WTO) Ministerial Meeting there were widespread
protests at Seattle alleging unfair trading practices by the economically powerful states. It was
argued that the interests of the developing world were not given sufficient importance in the
evolving global economic system.
10. What is World Social Forum?
The World Social Forum (WSF) is another global platform, which brings together a wide coalition
composed of human rights activists, environmentalists, labour, youth and women activists opposed
to neo-liberal globalisation. The first WSF meeting was organised in Porto Alegre, Brazil in 2001. The
fourth WSF meeting was held in Mumbai in 2004. The latest WSF meeting was held in Brazil in March
2018.