How has liberalisation of trade and investment policies helped the globalisation process?
Liberalisation of trade and investment policies helped the globalisation process tremendously. In India during the end of the 20th century, trade barriers were removed and goods could be imported and exported easily and also foreign companies could set up factories and offices here. This enabled MNCs to set up their offices and factories in India.
As MNCs spread their wings to many countries across the globe , rapid integration and interconnection between countries took place. The movement of goods and people between countries increased. The advancement in transport and communication technology added to globalisation.
Thus greater foreign investment and greater foreign trade resulted in the mushrooming of MNCs , which in turn resulted in Globalisation.
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.