Very Short Question and Answers - Factors Enabling Globalisation

ICT stands for Information and Communication Technology. It enables globalisation by allowing instant communication and information sharing across countries, making it easier for businesses and people to connect worldwide.

Examples: 1) Indian mangoes can be shipped to Europe quickly using cargo flights, 2) Container ships transport cars made in Japan to India and Europe.

Liberalisation of trade policies means removing or relaxing government restrictions on international trade, making it easier to import and export goods and services.

India’s liberalisation in 1991 allowed foreign direct investment and eased restrictions, attracting multinational companies like Suzuki, Pepsi, and Hyundai to set up operations in the country.

A trade barrier is a government-imposed restriction like import duty or quota that makes it difficult or expensive to trade. Example: An import tax on foreign computers increases their price, making them less competitive.

Reducing trade barriers makes it cheaper and faster to import and export goods, increasing international trade and economic integration.

The WTO supports globalisation by encouraging its member countries to reduce trade barriers, making global trade easier and more efficient.

SEZs attract foreign companies by offering facilities like tax breaks and relaxed regulations, encouraging investment and international trade.

With ICT tools like video conferencing and instant messaging, employees can work from different parts of the world while remaining connected, enabling companies to employ global teams.

Allowing 100% Foreign Direct Investment (FDI) in sectors like telecom encourages multinational companies to invest and operate freely in a country.

People across the globe can access the same music, movies, and online content, leading to the spread of culture through ICT platforms.

Open skies policies make it easier for international airlines to operate, increasing international tourism and business travel.

Modern transportation like cargo flights and refrigerated container ships allow perishable goods to be delivered quickly and safely to distant markets.

NAFTA eliminated extra taxes (tariffs) on goods traded between Canada, the USA, and Mexico, encouraging more free and open trade among these countries.

A smartphone used in India may be designed in the USA, manufactured in China, and use apps developed in India, showing global collaboration through technology.

Relaxing visa rules makes it easier for people to travel for business, work, and education, promoting the movement of human resources globally.

Double Taxation Avoidance agreements ensure that companies do not pay tax twice on the same income in two countries, encouraging them to operate internationally.

Globalisation allows students to study abroad more easily through relaxed education loan and visa processes, leading to greater cultural exchange and opportunities.

Automation refers to using ICT to handle online orders, track shipments, and manage inventory automatically, making supply chains smoother and faster.

The main factors are technological advancements (ICT and transport), liberalisation and reduction of trade barriers, and supportive government and international policies.