What is Globalisation?

Globalization has become a prominent feature of the world economy in the past few decades. This phenomenon is characterized by increased integration and interconnectedness among countries in terms of trade, investment, technology, and people movement. Multinational corporations (MNCs) play a significant role in driving globalization through their activities spanning multiple countries.

The Role of Multinational Corporations (MNCs)

MNCs have been expanding their operations globally, seeking locations with lower production costs. This trend has led to a rise in foreign investment by MNCs in various countries. Additionally, foreign trade between countries has increased significantly, with MNCs controlling a substantial portion of it. For instance, companies like Ford Motors operate manufacturing plants in multiple countries, not only catering to local markets but also exporting products to other regions.

Integration of Production and Markets

Greater foreign investment and trade have facilitated the integration of production and markets across countries. MNCs, with their global presence, have played an important role in this process. They engage in substantial trade in goods and services, as well as technology transfer between countries. This increased interconnectedness has led to closer economic ties among different regions of the world.

People Movement in Globalization

Apart from the movement of goods, services, investments, and technology, globalization also involves the movement of people between countries. Individuals often migrate in search of better income, job opportunities, or education. While there has been some increase in people movement, various restrictions have limited its growth in recent decades.

Globalization is the process of increasing interconnectedness and interdependence among nations worldwide. It involves the exchange of goods, services, capital, technology, and ideas across borders. Multinational corporations play a significant role in driving globalization through their global operations and investments. Technological advancements, particularly in communication and transportation, have accelerated this process. Globalization has positive and negative impacts globally on economies, societies, and cultures.

In this article, we will look into the meaning of globalisation, the factors enabling globalization and the impact of liberalization in detail. It is an important concept of Class 10 Economics. o through this article To get comprehensive notes on “What is Globalisation?” go through with this article.