Topic of the Day: Globalisation Category: Economics
Today’s Topic of the Day is ‘Globalisation’ which is one of the topics in NCERT Economics textbook Class X.
The topic of the Day (ToD) will help the aspirants to know the basic concepts and make their foundation strong while preparing for UPSC IAS Exam. Reading Topic of the Day religiously will mould the aspirants to prepare for Current affairs in a very effective way and make relevant current affairs notes.
What is globalization?
It is regarded as the process of rapid integration or interconnection between countries.
- The integration in globalization is done different fields like economics, industries, markets, cultures and policy-making around the world.
- It has integrated through the global network of trade, communication, immigration, and transportation.
- MNCs (Multinational companies) are playing a key role in the globalization process.
- The liberalisation of trade and investment has enabled globalisation by eliminating barriers to investment and trade.
Theory behind globalization
- Globalization is based on the theory of comparative advantage which states that the countries that are good at producing specific goods are better off exporting it to countries that are less efficient at producing those goods.
- Globalisation has promoted wealthy consumers and producers with education and skill.
- But many small manufacturers and labourers have suffered as an outcome of the growing competition.