Globalisation refers to the integration between countries through foreign trade and foreign investments by multinational companies.
• It means integrating our economy with world economy.
• Under globalisation a country becomes economically interdependent at the global or international level.
• This happens at various levels.
• Producers from other countries can come and sell their goods and services in India.
• Similarly, Indian goods and services can be sold in other countries.
Two factors that have enabled Globalisation:
(i) Information Technology — Telecommunication facilities like mobile, internet fax have helped us at negligible cost. Now a new magazine published for London readers can be designed and printed in Delhi.
(ii) Liberalisation of foreign trade and foreign investment – In India, trade barriers that were imposed after independence to protect producers’ interests in the country from foreign competition were removed after 1991. Businessmen were allowed to import or export freely.
