Question

Discuss the causes of globalization.

Hint:

Three interlinked drivers: technology, economic liberalisation, and international institutions/agreements.

Answer 1

Step 1: Technological causes:
Rapid advances in transportation, information technology and telecommunications (internet, mobile networks) have made the movement of goods, capital, people and information across borders faster, cheaper and easier than ever before.

Step 2: Economic causes:
The adoption of liberal, market-friendly economic policies by many countries (including India's 1991 reforms), the reduction of trade tariffs, the rise of multinational corporations, and the search for new markets and cheaper production locations have all driven cross-border economic integration.

Step 3: Political and institutional causes:
The end of the Cold War, the growth of international institutions (WTO, IMF, World Bank) promoting free trade, and regional trade agreements have provided the political framework within which globalization could accelerate.

Final Answer:
Globalization has been driven mainly by technological advances in transport and communication, liberal economic policies and trade openness, and the growth of international institutions promoting cross-border integration.