Question

Explain any two factors that are helpful for globalisation.

Hint:

Primary drivers of Globalisation: - Technology & Telecommunications: Internet, fast transport, instant communication. - Liberalization Policies: Removal of trade tariffs, quotas, and capital controls.

Answer 1

Concept: Globalisation refers to the multi-dimensional flow of ideas, capital, commodities, and people across international boundaries. It leads to the interconnectedness and interdependence of economies, cultures, and societies worldwide. Several primary catalysts have accelerated globalisation in the modern era. Detailed Explanation of Factors Helpful for Globalisation:
• Advancements in Technology, Communication, and Transportation:
• Technological breakthroughs are arguably the single most critical driver of globalisation. The invention of the microchip, high-speed internet, satellite communications, and mobile telephony transformed global communication.
• Instantaneous electronic transmission of data allows financial capital, trade orders, and ideas to move across the globe in seconds.
• Furthermore, containerized shipping, aviation logistics, and modern transportation networks drastically reduced the time and financial cost of moving raw materials, manufactured goods, and people across international borders.
• Economic Liberalization and Policy Deregulation:
• The widespread adoption of economic liberalization policies by nations across the globe (e.g., India’s LPG reforms in 1991) facilitated integration with the world economy.
• Governments systematically dismantled trade barriers, tariffs, import quotas, and stringent foreign investment restrictions.
• Institutional support from international economic bodies like the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank further promoted free trade agreements and global market integration.