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Summary
The chapter discusses the impact of liberalisation and globalisation on various aspects of life, especially focusing on their effects on industries, agriculture, employment, and social harmony.
Globalisation refers to the increasing interdependence between nations through trade, investment, and cultural exchange. It is driven by the desire for a free market economy, opening markets for private companies, and growing consumerism. Advantages of globalisation include the spread of trade, removal of trade barriers, establishment of international institutions, and the creation of larger markets for companies. However, it also brings challenges, such as increased competition, unemployment due to technological advancements, and a greater influence of multinational corporations over governments.
Liberalisation, on the other hand, involves reducing government regulations and restrictions on industrial and commercial activities. In India, this process began in the early 1990s, leading to deregulated markets, reduced corruption, lower prices, and better-quality products. The entry of foreign companies and investments has been encouraged, which has significantly impacted the economy.
The chapter also highlights the positive and negative impacts of globalisation on industries and agriculture. Industries have benefited from technological advancements and foreign investments, but they also face challenges like unemployment due to the import of sophisticated technology. In agriculture, globalisation has facilitated the transfer of better technologies, but it has also exposed farmers in developing countries to tough competition from farmers in developed countries who receive high subsidies.
Socially, globalisation has led to the adoption of a more uniform global culture, often at the expense of local traditions and family structures. However, it also promotes the idea of the world as a single family, where nations share knowledge and resources for the common good. The chapter concludes by illustrating how globalisation has brought the world closer, yet it also poses significant challenges that need to be addressed.
Textbook solutions
Multiple-Choice Questions
1. Removing barriers or restrictions set by the government is called
(a) License raj
(b) Inspector raj
(c) Investment
(d) Liberalisation
Answer: d. Liberalisation
2. A company that owns or controls production in more than one nation is called
(a) multinational corporation
(b) joint stock company
(c) global company
(d) company of the world
Answer: a. multinational corporation
3. Globalisation by connecting countries leads to
(a) lesser competition among producers
(b) greater competition among producers
(c) no competition between producers
(d) heavy competition between consumers
Answer: b. greater competition among producers
4. Which of the following is an example of a trade barrier?
(a) Foreign investment
(b) Delay or damage
(c) Tax on imports
(d) Liberalisation
Answer: c. Tax on imports
5. ‘Whole world is one family’
(a) Capitalism
(b) Vasudhaiva kutumbakam
(c) Liberalisation
(d) Globalisation
Answer: b. Vasudhaiva kutumbakam
Short Answer Questions
1. What is globalisation?
Answer: Globalisation means growth in the interdependence and increased links between governments, companies, and communities.
2. What do you understand by the word ‘Global Village’?
Answer: Modern means of transportation and electronic communication have shortened the distance between one part of the globe and another. With the help of aeroplanes, one can cover wide distances within no time. One can send messages to distant places within seconds through telephone, mobile phone, satellite phone, fax, etc. The Internet has revolutionised the sharing of wisdom and information. Thus, the world has now become a ‘global village.’
3. Do you agree that globalisation is a cause of technological development?
Answer: Globalisation has resulted in technological development in industries. In order to survive in the global market, industries in all countries are involved in research and development (R & D) in order to upgrade their production and quality control technologies. Domestic efforts are also being supplemented by the import of improved technologies from other countries.
4. Is it right to accept that modernisation means westernisation?
Answer: We are witnessing this in our country where modernisation has been confused with westernisation. By social imitation process, even the villagers are adopting the westernised way of eating, clothing, and entertainment, and they are losing their own rich cultural ethos.
5. What do you mean by liberalisation?
Answer: Liberalisation means removal of unnecessary government rules and regulations governing the industrial and commercial activities.
Long Answer Questions
1. What are the main causes of globalisation?
Answer: The main causes of globalisation are:
(i) To establish a free market economy.
(ii) The opening up of markets for private companies in the world.
(iii) Growing consumerism because of rising standards of life.
2. What are the advantages and disadvantages of globalisation?
Answer: Advantages of globalisation are:
(i) Globalisation allowed the spread of trade across the world.
(ii) It removed trade and traffic barriers.
(iii) Globalisation helped in the establishment of International Institutions and organisations.
(iv) Globalisation provided a bigger market for large companies.
Disadvantages of globalisation are:
(i) Globalisation made the business competitive, complex, and rapidly changing.
(ii) Globalisation increased unemployment and translocation in developing countries by stressing on sophisticated technology.
(iii) Globalisation allows multinational corporations (MNCs) and transnational corporations (TNCs), rather than governments, to play a key role in many countries.
3. What are the advantages and disadvantages of the internet?
Answer: Advantages of the Internet are:
(i) Internet has revolutionised the whole communication system of the world.
(ii) E-mails and cheap Internet phone calls made international communication easier.
(iii) The complications of world affairs are made easy by Internet access.
Disadvantages of the Internet are:
(i) Terrorists use the Internet to plan and co-ordinate terrorist attacks.
(ii) Attempts can be made to disrupt economies by using computer viruses and hacking into national security systems to steal military secrets.
4. How is globalisation causing cultural changes in the developing countries?
Answer: Globalisation induces the creation of an artificial global culture. This has the effect of eliminating the variegated cultural and artistic forms that flourish in various regions in a country like India with its long cultural traditions. We are witnessing this in our country, where modernisation has been confused with westernisation. By social imitation process, even the villagers are adopting the westernised way of eating, clothing, and entertainment, and they are losing their own rich cultural ethos.
Globalisation also brings about changes in the family structure. In India, the joint family system has been the basic unit of our society. This is being replaced by the nuclear family norm. According to a recent research, the fast food habit is reducing the life-span of youth in the USA. But we find it fashionable to adopt it without thinking of its bad effects. The loss of traditions and social values, as a result of globalisation, is having serious implications for social harmony and social and cultural ethos of Indian society.
5. Discuss the impacts of globalisation on agriculture.
Answer: The impact of globalisation on agriculture is similar to that of industry. Globalisation has facilitated the transfer of the latest appropriate agricultural technologies, better seeds, fertilisers, plant protection chemicals, and equipment. Setting up of multinational food-processing industries, packaging, value addition machinery has greatly benefitted the farmers all over the world. The easy export and import of agricultural goods is a boon to the agro-industry sector of a country. The world market for agricultural items has been opened up due to globalisation. This permits a country having a surplus of agricultural produces to export its surplus stock and earn foreign exchange.
But in its wake, globalisation has brought some adverse impacts on the agricultural sector. Farmers of developing countries are not strong enough to compete with farmers of a developed and rich country like the USA. The farmers in the USA and the European countries are given high subsidies by their governments to produce and export agricultural produce at cheaper rates in the world market. It proves disadvantageous to the farmers from the underdeveloped and developing countries in the foreign market. Even their domestic market is dumped with foreign produce of better quality at lower rates.
6. What is the effect of globalisation on a country’s natural resources?
Answer: To face the challenges of the world market, farmers all over the world are increasingly intensifying their agriculture. The increasing intensification of agriculture puts stress on natural resources in parts of a country and brings under its scrutiny concerns, issues, and initiatives related to three main inputs, namely irrigation, fertilisers, and pesticides, which have a huge impact on natural resources.
7. How is a capitalist economy a precursor of globalisation?
Answer: Capitalism is a system in which free market economics allows people and firms which own wealth (capital) to get richer by buying and selling with little or no interference from their respective governments. This system facilitates the growth of large companies, leading to the emergence of big industrial and business units in many countries, which is a key characteristic of globalisation. Thus, capitalism, by promoting free market economies and large-scale production, acts as a precursor to globalisation.
Think and Answer
1. Fast food is increasingly becoming a norm of modern society. Do you see the hand of globalisation behind it? How?
Answer: Yes, globalisation plays a significant role in making fast food a norm of modern society. The globalisation process has led to the spread of multinational fast-food chains across different countries, thereby introducing and popularising fast food in various cultures. Through globalisation, these fast-food companies have been able to standardise their products and services worldwide, making fast food easily accessible and widely accepted as part of daily life in many societies. The influence of globalisation is evident as it encourages the adoption of a fast-paced lifestyle, which aligns with the convenience offered by fast food.
2. Do you think that globalisation is good or bad? Discuss for and against globalisation. Give reasons for your view.
Answer: Globalisation has both positive and negative aspects, and its impact can be viewed differently depending on the perspective.
For Globalisation:
- Globalisation has facilitated the exchange of goods, services, and ideas across borders, leading to economic growth and development in many countries.
- It has helped in the spread of technology and innovation, improving living standards and creating new opportunities for employment.
- The global market has expanded, allowing businesses to reach a wider audience, which can lead to increased profits and the availability of a diverse range of products for consumers.
- Globalisation promotes cultural exchange, leading to a better understanding and appreciation of different cultures around the world.
Against Globalisation:
- Globalisation can lead to the erosion of local cultures and traditions as Western lifestyles and consumerism are often promoted over indigenous practices.
- The dominance of multinational corporations in the global market can stifle local businesses, leading to unemployment and economic inequality in developing countries.
- Environmental degradation is another concern, as globalisation encourages mass production and consumption, which can result in the overexploitation of natural resources and increased pollution.
- Globalisation can also exacerbate income inequality, as the benefits are often disproportionately enjoyed by wealthier nations and individuals, while poorer countries and communities may be left behind.
Ultimately, whether globalisation is good or bad depends on how it is managed and the extent to which its benefits are distributed fairly across societies.
Extras MCQs
1. Which international organisation focuses on health issues worldwide?
A. UNESCO
B. WHO
C. IMF
D. WTO
Answer: B. WHO
13. What significant impact has globalisation had on the world’s cultural diversity?
A. Increase in local traditions
B. Creation of a global culture
C. Preservation of ancient practices
D. Decline in urbanisation
Answer: B. Creation of a global culture
Extra Questions and Answers
1. How have modern means of transportation and communication affected global distances?
Answer: Modern means of transportation and electronic communication have shortened the distance between one part of the globe and another. With the help of aeroplanes, one can cover wide distances within no time. One can send messages to distant places within seconds through telephone, mobile phone, satellite phone, fax, etc.
18. How does globalisation relate to the concept of Vasudhaiva Kutumbakam?
Answer: Globalisation relates to the concept of Vasudhaiva Kutumbakam, which means “the whole world is one family.” The sharing of knowledge, ideas, and culture through globalisation helps realise this ideal. An example is the global response to the tsunami calamity in Southeast Asia, where the entire global community came together to provide assistance, reflecting the interconnectedness fostered by globalisation.
Ron’e Dutta is a journalist, teacher, aspiring novelist, and blogger. He manages Online Free Notes and reads Victorian literature. His favourite book is Wuthering Heights by Emily Bronte and he hopes to travel the world. Get in touch with him by sending him a friend request.
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