Question

Explain the nature of Globalisation.

Answer 1

The Nature of Globalization: Globalization means expansion of financial matters beyond the geographical borders of nations.
The nature of globalization can be explained by the following points.
$1$. Open Economy: (a) Globalization had made possible trade with any nation beyond borders.
(b) Multinational companies have been given easy entry in a nation, so world has become a single market.
(c) Open economy has changed standard of living of the world.
$2$. New Competitions: (a) Use of new technology has added to increase in production.
(b) Sale of goods in the world market has become possible, which resulted in development of open competition.
(c) On one side there is an opportunity of trade, while on the other side employment in the developed nations is decreasing.
$3$. Investment Opportunities: (a) Globalization has provided varied opportunities to nations and traders for investment in any nation.
(b) Earlier there were restrictions on investments in foreign countries, but now flow of capital is increasing.
$4$. Development of Cities: (a) Globalization is a born for developing nations. The growth rate of economy is $8\%$.
(b) New technology has added to the growth of cities but villages are neglected.
(c) However, India has made commendable progress in agriculture.
(d) Once, the importer of food-grains, India now exports food grains to $21$ countries.
(e) The development rate of India has gone above $6\%$.
$5$. Use of Information Technology: (a) Globalization has gained momentum due to development of information technology.
(b) Communication has become easy due to satellites.
(c) Internet has reduced geographical distance.
(d) The world has become a global village.