Globalisation — Important Questions

Rapid integration of countries, Increased foreign trade, Movement of capital across borders, Technology transfer

Globalisation involves rapid integration of countries through increased trade, capital movement, and technology transfer. Isolation is opposite to globalisation.

Flow of trade in goods and services, Flow of labour (migration), Flow of capital for investment

The three main flows are: trade in goods and services, labour migration, and capital for investment. These are the primary ways countries are economically connected.

Cheap labour availability, Proximity to markets, Favourable government policies, Skilled workforce

MNCs choose locations based on low costs (cheap labour), market access, supportive policies, and skilled workers. High costs would be avoided.

1991

India began major economic liberalisation around 1991, removing many barriers to foreign trade and investment.