CHAPTER – 7

GLOBALISATION

KNOW THE TERMS

Cultural Heterogenisation

It signifies cultural differences and the distinctive nature of cultures generated by

globalisation.

Cultural Homogenisation

It signifies the development of uniform cultures all around the world.

Globalisation

It signifies the integration of an economy with the economies of other countries under the
process of free flow of trade and capital.

Liberalisation

It signifies relaxation of government rules and regulations relating to activities in the service
and industrial sectors.

Privatisation

It allows private sector companies to produce goods and services in a country.

Welfare State

A state where the government regulates the means of production in the interest of the people.

World Social Forum (WSF)

A global platform that brings together a wide coalition of human rights activists,
environmentalists and women activists.

MEANING OF GLOBALISATION
Globalisation refers to the flow of ideas, capital, commodities and people from one country to
another. Its main feature is worldwide interconnectedness, created and sustained by constant
flows.

Globalisation is a multidimensional concept with political, economic and cultural aspects. It

creates new job opportunities in industries and multinational companies and increases the
volume of trade in goods and services.

However, it also reduces the capacity of governments to take independent decisions. It

involves the movement of ideas, capital, commodities across borders and people migrating in
search of better livelihoods.

CAUSES OF GLOBALISATION
1. Improved transport making global travel easier.
2. Improved technology enabling faster communication (e.g., the Internet).
3. Growth of multinational companies with global presence.
4. Growth of global trading blocs reducing national barriers (e.g., European Union).
5. Reduction of tariff barriers encouraging global trade.
6. Firms exploiting economies of scale to increase specialisation.
7. Growth of global media.
8. Global trade cycle increasing economic interdependence among countries.

POLITICAL CONSEQUENCES OF GLOBALISATION

• Globalisation leads to erosion of state capacity, reducing the government’s ability to
act independently.
• Welfare states are giving way to minimalist states focused mainly on law and order
and security.
• Markets become the prime determinant of economic and social priorities.
• Increased role of MNCs reduces the decision-making power of governments.
• However, globalisation does not eliminate the state; political autonomy continues.
• States withdraw from certain economic domains while maintaining core functions.
• Enhanced technology helps the state collect and manage information more effectively.

ECONOMIC CONSEQUENCES OF GLOBALISATION

• Economic globalisation highlights the role of institutions like IMF and WTO.
• It involves many actors beyond international institutions.
• It raises questions about unequal distribution of economic gains.
• Economic flows often favour powerful countries and institutions.
• Investors from rich countries invest globally, including developing nations.
 • Similar economic policies produce different outcomes in different regions.
• Globalisation has generated intense debate worldwide.

CRITICS OF ECONOMIC GLOBALISATION

• Critics argue it benefits only a small section of society.
• It impoverishes people dependent on government welfare and jobs.
• Emphasis on social safety nets to protect economically weak sections.
• Many movements feel safety nets are insufficient.
• Some economists view economic globalisation as a new form of re-colonisation.

ADVOCATES OF ECONOMIC GLOBALISATION

• It promotes higher economic growth and well-being through deregulation.
• International trade allows countries to specialise.
• Globalisation is inevitable and should be responded to intelligently, not resisted
blindly.

CULTURAL CONSEQUENCES OF GLOBALISATION

• Affects lifestyle, food habits, clothing and thinking.
• Creates fear of loss of cultural diversity.
• Leads to cultural homogenisation.
• Western culture is often imposed on other cultures.
• This threatens rich cultural heritage worldwide.

POSITIVE CULTURAL EFFECTS

• Cultural effects are not entirely negative.
• Cultures constantly accept external influences.
• Some influences expand choices without destroying traditions.
• Example: Burger cannot replace masala dosa.
• Globalisation also leads to cultural heterogenisation, making cultures more distinct.

INDIA AND GLOBALISATION

• India has a long history of global connections.
 • During colonial rule, India exported raw materials and imported finished goods.
• After independence, India adopted protectionist policies.
• Neglect of sectors like health and education occurred.
• In 1991, India adopted economic reforms, deregulation and foreign investment.

RESISTANCE TO GLOBALISATION
• Left-wing critics see it as a phase of capitalism benefiting the rich.
• Weakens state capacity to protect the poor.
• Right-wing critics fear cultural and political impacts.
• Demand return to self-reliance and protectionism.
• Cultural traditions are feared to be eroded.

GLOBAL RESISTANCE MOVEMENTS

• Anti-globalisation movements operate through global networks.
• 1999 WTO Seattle protests highlighted unfair trade practices.
• Developing countries’ interests were ignored.
• World Social Forum (WSF) promotes counter-hegemonic globalisation.
• WSF meetings unite activists worldwide.

INDIA AND RESISTANCE TO GLOBALISATION

• Social movements help people understand global changes.
• Resistance comes from left, trade unions and farmers.
• Opposition to MNCs and patenting of plants like Neem.
• Cultural opposition to foreign TV channels and celebrations.

GLOBALISATION AND INTERNATIONALISM

• Affects trade, environment, human rights, refugees and technology.
• Encourages cooperation to solve global problems.
• Promotes peace and international understanding.
• Supports international relations and free-market values.

KNOW THE DATES

 1. 1991 – Economic reforms in India
2. 1999 – WTO Ministerial Meeting (Seattle)
3. 2001 – First World Social Forum
4. 2004 – Fourth World Social Forum
5. 2007 – Seventh World Social Forum

Q1. What is Globalisation? Explain its main features. (6

Marks)
Globalisation refers to the free flow of goods, services, capital, ideas and people across
national borders.

Main Features:

1. Worldwide interconnectedness of countries

2. Free flow of trade and capital
3. Growth of multinational companies (MNCs)
4. Role of international institutions like IMF and WTO
5. Spread of technology and communication
6. Cultural interaction among societies

Q2. Explain the Political Consequences of Globalisation.

(6 Marks)
1. Reduction of State Capacity – Governments lose independent decision-making power.
2. Decline of Welfare State – Welfare functions are reduced.
3. Rise of Market – Market becomes more important than government policies.
4. Influence of MNCs – MNCs affect policy decisions.
5. Minimalist State – State focuses mainly on law and order.
6. State Still Important – Globalisation does not end the role of the state.

Q3. Explain the Economic Consequences of Globalisation.

(6 Marks)
1. Increased international trade
2. Greater flow of foreign investment
3. Role of IMF and WTO in economic decisions
4. Unequal distribution of economic gains
5. Developing countries often face pressure
 6. Increased debate and criticism worldwide

Q4. What are the Cultural Consequences of

Globalisation? (6 Marks)
1. Affects food habits, clothing and lifestyle
2. Spread of Western culture
3. Leads to cultural homogenisation
4. Threatens local traditions
5. Reduces cultural diversity
6. Causes fear of loss of identity

Q5. What is Cultural Homogenisation and Cultural

Heterogenisation? (4 Marks)
Cultural Homogenisation:

• Development of uniform culture worldwide

• Example: Fast food culture

Cultural Heterogenisation:

• Cultures become more diverse

• Global influences adapt locally

Q6. Discuss India and Globalisation. (6 Marks)

1. India had global trade links in ancient times
2. Colonial rule changed India’s economic structure
3. After independence, India followed protectionism
4. Neglect of health and education sectors
5. Economic crisis led to reforms in 1991
6. India opened its economy to foreign investment

Q7. What is Resistance to Globalisation? Explain. (6

Marks)
1. Opposition by left-wing groups to economic inequality
 2. Fear of loss of state power
3. Cultural resistance from right-wing groups
4. Demand for self-reliance
5. Protests against MNCs
6. Global networks of anti-globalisation movements

Q8. Explain the Role of World Social Forum (WSF). (4

Marks)
1. Platform for global civil society
2. Opposes neo-liberal globalisation
3. Supports human rights and environment
4. First held in Brazil

Q9. What are the Arguments in Favour of Globalisation?

(4 Marks)
1. Promotes economic growth
2. Creates employment opportunities
3. Encourages free trade
4. Leads to global cooperation

Q10. What are the Arguments Against Globalisation? (4

Marks)
1. Benefits only rich countries
2. Increases inequality
3. Weakens welfare policies
4. Threatens local culture

Q11. Define Liberalisation and Privatisation. (4 Marks)

Liberalisation:

• Reduction of government controls

• Encourages private sector

Privatisation:
 • Transfer of public sector to private sector
• Improves efficiency

Q12. Mention any four causes of Globalisation. (4 Marks)

1. Improved transport
2. Advanced communication technology
3. Growth of MNCs
4. Reduction of trade barriers

Q13. What is meant by Minimalist State? (2 Marks)

• A state that limits its role to law, order and security.

Q14. Name two international institutions linked with

Globalisation. (2 Marks)
1. International Monetary Fund (IMF)
2. World Trade Organisation (WTO)

Q15. Mention two cultural impacts of Globalisation. (2

Marks)
1. Spread of Western lifestyle
2. Change in food and clothing habits