Page 1 - LN-GLOBALISATION

LESSON NOTES

Chapter-Globalisation

1. Globalisation is the integration of economy of a country in the process of free
flow of trade and capital. It may also include 'Brain drain' across borders.

2. Globalisation increases the volume of trade in goods and services, inflow the

foreign capital, increases foreign direct investment, creates new jobs, strengthens

domestic economies, improves productive efficiency and healthy competition.

3. Globalisation may have negative impacts also as it failed to generate sufficient

employment, modem methods of cultivation are not acquainted to less educated

persons, it creates income inequality and exploits natural resources and labour

force.

4. The globalisation is the result of historical factors, technological innovations,

liberalisation of foreign trade and investment policies, and opening of

multinational companies.

5. Globalisation consequences may be political, economical and cultural,

politically stunts' capacity has received a boost with enhanced technologies to

collect information about its citizens.

6. Globalisation has involved greater trade in commodities across the globe;the

restrictions imposed by different countries on allowing the imports of other

countries have been reduced.globalisation has also led to the flow of ideas,across

national boundaries.Ex:- Internet and Computer.

7. Economic flows in various forums, like commodity, capital, people and ideas

prompts rich countries to invest their money in countries other than their own. It

also draws attention towards the role of JMF and WTO in determining economic

policies across the world.