Long Answer Questions: Factors Enabling Globalisation
Medium Level (Application & Explanation)
Q1. Explain how Information and Communication Technology (ICT) has contributed to the rise of globalisation. Use examples to support your answer.
Answer:
ICT refers to modern tools like computers, smartphones, internet, and video conferencing.
It has made it easy for people and companies to communicate instantly across the world.
Businesses can now manage operations, share data, and give instructions to their branches in different countries immediately.
For example, call centres in India can solve problems for customers in the USA, simply by using the internet and phones.
Teachers in one country can teach students in another, while banks can send money and information in seconds.
ICT has also allowed remote work and online shopping, making the global market more accessible to everyone.
Q2. How have improvements in transport helped the process of globalisation? Give suitable examples.
Answer:
Modern transport like container ships, cargo planes, and high-speed trains reduce the time and cost to move goods.
This makes it possible for products to be sold and bought in distant markets.
For instance, cars made in Japan are shipped to Europe or India rapidly using advanced cargo ships.
Indian mangoes can be delivered fresh to global markets using cargo flights.
People can travel easily; tourists contribute to international business by spending money in other countries.
Thus, efficient transport has made borders less important for trade and travel.
Q3. What does liberalisation of trade policies mean? How did it enable globalisation in India?
Answer:
Liberalisation means relaxing or removing government controls on trade and business.
Earlier, India controlled imports using high taxes or strict rules to protect local industries.
In 1991, India reduced many of these controls to allow free movement of goods and invite foreign investment.
This attracted companies like Hyundai, Suzuki, or Pepsi to start businesses in India.
Indian products could also be sold more freely in global markets.
Liberalisation made India more connected with the world economy, increasing global trade and investment.
Q4. Why is reduction of trade barriers important for globalisation? Explain with examples.
Answer:
Trade barriers like import taxes and quotas made it tough and costly to trade with other countries.
Reducing these barriers allows goods and services to enter and exit countries more easily and cheaply.
For example, after import duties on computers were reduced, Indian customers could buy affordable, high-quality computers.
India’s garment industry expanded exports when restrictions to the US and European Union were removed.
Countries in trade agreements like NAFTA exchange goods freely without extra taxes, encouraging more trade.
This openness is essential for smooth, global trade and the spread of globalisation.
Q5. Describe two ways in which policy decisions by governments support globalisation. Give real-world examples.
Answer:
Governments may create Special Economic Zones (SEZs) offering tax breaks and relaxed rules to attract foreign companies, like those in Noida and Chennai in India.
They can also sign agreements to avoid double taxation, so MNCs do not pay tax on the same income in both home and host countries.
Open skies policies allow foreign airlines to operate easily, increasing business and tourism.
India permitting 100% foreign direct investment (FDI) in telecom is another example.
Easing rules for foreign banks to open branches invites more international finance.
These decisions make it easier for companies and people to connect, trade, and invest worldwide.
High Complexity (Analysis & Scenario-Based)
Q6. Suppose the government of a developing country decides to increase import duties on foreign cars. How might this affect its globalisation process? Analyze the impact.
Answer:
Higher import duties act as a trade barrier, making foreign cars more expensive.
Domestic consumers may find it cheaper to buy locally-made cars, reducing demand for imports.
Foreign car companies may hesitate to invest or set up factories in that country, fearing lower sales.
This reduces global trade and investment, slowing down the process of globalisation in that country.
Other nations might retaliate, making it hard for this country to export its products.
In the long run, it may miss out on competition, new technology, and consumer choice that globalisation brings.
Q7. Analyze how modern ICT and liberalisation policies together have changed the workplace for Indian professionals.
Answer:
Modern ICT allows Indian professionals to work with clients or companies in different parts of the world using the internet, email, and video calls.
Liberalisation policies made it easy for foreign businesses to enter India and hire Indian talent or partner with Indian companies.
Many Indians now work in global companies without leaving their country, doing jobs in IT, banking, customer service, and more.
New industries and job opportunities have been created due to MNCs setting up offices in India.
Professionals can upgrade their skills according to global standards, improving career prospects.
The workplace has become more diverse, with better pay and international exposure.
Q8. A company produces software in India, assembles computers in China, and sells the final product in Europe. Explain how technology, trade policies, and government decisions make this possible.
Answer:
Technology, especially ICT, lets the company manage and share work easily between teams in India and China.
Modern transport enables finished computers to be shipped quickly and safely to Europe.
Liberal trade policies and reduced barriers let the company move products, parts, and know-how across countries with minimal restrictions or extra costs.
Governments may provide SEZs, offer tax breaks, and sign trade agreements to encourage such international operations.
Open rules for FDI allow the company to set up branches or partnerships in other countries.
Without these combined factors, producing and selling in multiple places would be difficult and costly.
Q9. Imagine a country has modern transport systems but keeps its trade barriers high. Will it benefit fully from globalisation? Explain your reasoning.
Answer:
Even with advanced transport, high trade barriers like taxes, quotas, or strict import rules make trading across borders expensive and complicated.
Foreign goods may not enter the market, and local products may face difficulties being sold abroad.
This limits opportunities for businesses and consumers to access the wider global market.
Companies in the country might not be able to adopt new technologies or compete effectively.
Therefore, without reducing trade barriers, the country cannot benefit from globalisation as much as those with both modern transport and open trade.
Global economic growth and diversity will remain limited.
Q10. Evaluate how the presence of supportive policy decisions can help a country’s small producers and service providers participate in the global economy.
Answer:
Supportive policies like SEZs give small producers better access to infrastructure and reduced taxes, making them competitive internationally.
Easing export procedures and providing incentives encourages small businesses to sell abroad.
Agreements that avoid double taxation help small service providers who work for foreign clients keep more of their earnings.
Training programs and credit support can enable them to adopt global standards and improve product quality.
Relaxed visa and trade rules allow service providers (like software or design firms) to attract international clients.
With such support, small producers and service providers can enter and succeed in global markets, benefiting from globalisation.
