Globalisation

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Globalisation is the process of integrating a country's economy with other world economies through trade, capital flows, and technology. The three main channels are: 1) Opening up of world trade throu…

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LPG stands for Liberalisation, Privatisation, and Globalisation. These are the three pillars of India's new economic policy introduced in 1991: Liberalisation removes controls and licensing from the e…

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Four main factors led to globalisation: 1) Weakness of pre-1991 policies causing low growth and industrial stagnation, 2) Major foreign exchange crisis in 1991 due to Gulf War, rising oil prices, and …

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The 1991 crisis occurred due to: Iraq-Kuwait war increasing oil import bills, rising external debt burden, withdrawal of NRI deposits due to political instability, and imports growing faster than expo…

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Positive effects include: 1) Expansion of world trade, 2) Increased flow of international capital through MNCs, 3) Greater interdependence between countries, 4) Technology transfer to developing natio…

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Negative effects include: 1) Increased vulnerability to developments in other countries - economic crises can spread globally (like 2008 US recession, 2012 Euro crisis), 2) Volatility in financial mar…

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Currency convertibility means allowing exchange rates to be determined by international markets without official intervention. In August 1994, India achieved partial convertibility - convertibility on…

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Import liberalisation measures include: 1) Dismantling of import licensing system, 2) Almost complete abolition of quantitative restrictions on imports under WTO agreements, 3) Sharp reduction in impo…