📚 Part of: Ancient Indian Social Structure & Himalayan Geography Mcqs

Two factors that enabled Globalisation .....

Category: Miscellaneous Indian Gk

Correct Answer: C) Development in Technology and Liberalization of Foreign Trade.

Exam Relevance: UPSC Civil Services, IAS Prelims, SSC CGL, Banking Exams, MBA Entrance Exams

Difficulty: Moderate

Concept notes:

Globalisation refers to the increasing interconnectedness of the world's economies, societies, and cultures. It is driven by factors such as technological advancements and the liberalisation of trade policies, which facilitate the flow of goods, services, capital, and information across borders.

Common Mistakes:
  • Confusing the role of the World Trade Organisation with the broader concept of globalisation.
  • Overlooking the importance of technological advancements in enabling globalisation.
  • Not understanding the significance of liberalisation in foreign trade policies.
Explanation:

Globalisation is a complex process that involves the integration of economies, societies, and cultures across the world. It is driven by various factors, but two of the most significant are the development in technology and the liberalisation of foreign trade.

**Development in Technology:**

Technological advancements have been a key driver of globalisation. The advent of the internet, for instance, has revolutionised communication and information exchange, making it easier for businesses to operate across borders. Improved transportation technologies, such as container shipping and air cargo, have reduced the cost and time of moving goods internationally. These technological advancements have lowered the barriers to international trade and facilitated the flow of goods, services, and capital across national boundaries.

**Liberalisation of Foreign Trade:**

The liberalisation of foreign trade policies has also played a crucial role in enabling globalisation. Many countries have adopted policies that reduce trade barriers, such as tariffs and quotas, and have opened up their markets to foreign competition. This has encouraged international trade and investment, leading to increased economic integration and interdependence among nations. The liberalisation of trade policies has been supported by international agreements and organisations, such as the World Trade Organisation (WTO), which aim to promote free trade and reduce trade barriers.

**Other Factors:**

While the development in technology and the liberalisation of foreign trade are the primary factors that have enabled globalisation, other factors also contribute to the process. For example, foreign investment, which involves the flow of capital from one country to another, has facilitated the expansion of businesses and the transfer of technology and management practices across borders. The World Trade Organisation (WTO) plays a significant role in regulating and facilitating international trade, but it is not a primary factor that enabled globalisation.

In conclusion, the development in technology and the liberalisation of foreign trade are the two key factors that have enabled globalisation. These factors have reduced the barriers to international trade and investment, leading to increased economic integration and interdependence among nations. Understanding these factors is essential for comprehending the process of globalisation and its impact on the world economy.

Option Analysis:
  • Option A: This option is incorrect. While foreign trade and foreign investment are important aspects of globalisation, they are not the primary factors that enabled it. The development in technology and the liberalisation of foreign trade are more fundamental in driving globalisation.
  • Option B: This option is incorrect. The World Trade Organisation (WTO) is an international body that regulates and facilitates international trade, but it is not a primary factor that enabled globalisation. Exports are a result of globalisation rather than a cause.
  • Option C: This option is correct. The development in technology, such as the internet and transportation, has significantly reduced the barriers to international trade and communication. The liberalisation of foreign trade policies has also played a crucial role in enabling countries to engage more freely in international trade, thus fostering globalisation.
  • Option D: This option is incorrect. The correct factors that enabled globalisation are mentioned in option C, making this option irrelevant.

Mnemonic: TechLib - Technology and Liberalization

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