Globalisation and the Indian Economy

Lesson

Part 1 — what globalisation is and the factors that made it possible. These two topics are the board-exam part of this chapter.

In this lesson you will

Define globalisation as the integration of countries through trade, investment, technology and the movement of people
Explain the role of MNCs and foreign trade in integrating markets
Explain how transport and information technology enabled globalisation
Explain liberalisation of trade and investment, India's 1991 changes and the role of the WTO

Part 1 at a glance

Concept

What is globalisation?

Globalisation is the process of rapid integration or interconnection between countries.

Table of the four channels of globalisation: trade in goods and services, investment, technology, and people, with an example of each
Channel	What moves	Example (imagined or general)
Trade	Goods and services	Indian medicines sold in Africa; software services for banks abroad
Investment	Money spent on factories, offices, machines	A foreign company builds a factory in Gujarat
Technology	Machines, software, know-how	Indian hospitals use scanners designed abroad
People	Workers and students	Nurses and engineers working abroad (limited by visas)

Diagram

Foreign trade integrates markets