Question

Write short notes on.

Globalization.

Answer 1

Globalization refers to the process of integration of various economies of the world. It implies the reduction of restrictions on imports and exports, such as licensing and tariffs in order to facilitate the smooth movement of trade across nations. In India, the following policies were followed with regard to globalization:

1. Removal of Trade Restrictions: Various barriers to trade such as tariffs, custom duties, quotas, etc. were reduced considerably.
2. Reducing the Export Duty and Import Duty: Various duties and taxes on import and export were removed to promote free trade.
3. Encouragement to Foreign Capital Investment: With the aim of encouraging foreign capital investment, various steps were taken, such as increasing the equity limit of foreign capital, setting up special economic zones, introducing Foreign Exchange Management Act (FEMA).