What are the factors that have enabled globalisation ?
Rapid improvement in transportation and communication technology and the liberalisation of trade restrictions and foreign investment have been the major factors that has enabled the globalisation process.
The dramatic improvement in transportation technology has played a vital role in faster delivery of goods across long distances at lower costs and in the movement of people from one country to another in a short time. As the basis of gloalisation is foreign trade movement of goods and people are vital for globalisation.
Information and communication technology (or IT in short) has also played a major role in globalisation. Many MNCs are service based companies therefore the transfer of information is very vital to them. Computers , internet facilities, telegraph, telephones mobile phones, and fax are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
Liberalisation of foreign trade and investment policy has speeded up the globalization process. During the end of the 20th century, India removed trade barriers and foreign goods flooded the Indian market. Barriers on foreign investment were also removed to a large extent enabling many MNCs to set up their factories in India.
What are the various ways in which MNCs set up, or control, production in other countries?
How has liberalisation of trade and investment policies helped the globalisation process?
What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.