Very Short Question and Answers - Globalisation
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Globalisation is the process of rapid integration or interconnection among countries, allowing people, businesses, and governments to interact and depend on each other for goods, services, investments, technologies, and culture.
Two key aspects of globalisation are the movement of goods and the movement of services.
An example is India exporting textiles and importing electronics from other countries.
Movement of services occurs when services like banking, tourism, or IT cross borders; for example, Indian IT companies such as TCS offer software services to clients in the US.
Movement of technology refers to the spread and sharing of inventions, machinery, and know-how between countries, such as the use of foreign medical equipment in Indian hospitals.
A foreign investment example is Coca-Cola (USA) setting up factories in India.
Tata Motors invested abroad and owns Jaguar Land Rover, a UK-based automobile company.
Globalisation allows people to travel, work, or study in other countries; for example, Indian students studying in the US or UK.
Cultural exchange happens when international movies become popular in India and Indian traditions like Yoga are adopted abroad.
The Internet and efficient transportation systems are two technological advancements that have promoted globalisation.
The WTO encourages trade liberalisation by reducing trade barriers, making international trade easier and thus promoting globalisation.
MNCs set up operations in various countries to access new markets and reduce production costs, thus increasing global economic integration.
Globalisation gives local producers access to international markets, technology, and investments, which can increase sales and improve product quality.
One negative impact is the potential loss of local culture and identity as global cultural products dominate local traditions.
An example is professionals from India working in Gulf countries like UAE and Saudi Arabia.
Consumers benefit from increased choices and competitive prices due to the availability of international brands.
Globalisation allows firms and individuals to invest their capital in other countries, for instance, when Japanese companies invest in the Delhi Metro Rail project.
Because it influences how we work, produce, consume, travel, and even think, connecting us more closely with the rest of the world.
Using a smartphone with components from different countries and software developed abroad is an example of globalisation in daily life.
Globalisation increases competition from international firms, which can make it difficult for local producers to survive unless they improve quality and reduce costs.