Definition
There are several factors that helped enabling globalisation.
Technology
The more technology evolves, the easier it is to communicate, trade and do things which were not possible in the past. The advancements in the transportation technology has played a crucial role.
IT
It has played a role in production of services, like magazines, which are faxed to India and then printed. And e-banking.
Liberalisation
After independence, the Indian government had set up trade barriers to protect Indian economy. The govt. had controlled the market. But in 1990s, the trade barriers were mostly lifted, so that the Indian market can compete with the foreign market and improve its quality. This also led to the boom of the private sector. LPG: Liberalisation, Privatisation and Globalisation.
In other words, the removal of trade barriers and restrictions set up by the govt. is called liberalisation.
Trade Barrier
The restrictions on imports and tax to regulate the imports. For example, tax on China-made goods.
Backlinks
Globalisation and the Indian Economy
Flashcards
What are the factors that led to globalisation? ? Technology and Liberalisation
What is liberalisation? ? The removal of trade barriers and restrictions set up by the govt. is called liberalisation.
What is a trade barrier? ? The restrictions on imports and tax to regulate the imports. For example, tax on China-made goods.
LPG: {{Liberalisation, Privatisation and Globalisation.}}
How has IT played a role in globalisation? ? It has played a role in production of services, like magazines, which are faxed to India and then printed. And e-banking.