Question 1
What is the role of MNCs in the globalisation process?
Answer
Globalisation is the process of rapid integration or interconnection between countries. MNCs are
playing a major role in the globalisation process. More and more goods and services, investments and
technology are moving between countries.
MNCs ( Multinational corporations) have been increasing in number.
MNCs have been looking for locations offering cheap production.
Trade between countries has also increased.
Foreign investment by MNCs has increased.
MNCs are involved in the trade of goods and service.
MNCS are playing a key role in globalization as regions of the world are coming closer and closer.
Countries are coming together because of the movement of people for:
Better education.
Better income
Better jobs.
Movement of people has not been increasing due to various restrictions.
Question 2(already coverd)
What are the various ways in which countries can be linked?
Answer
The various ways in which countries can be linked are:
1. The movements of goods and services — Countries are interconnected through foreign trade.
This involves the exchange of goods and services across borders.
2. Investments — MNCs operate across borders, invest in foreign markets, buy lands, provide jobs
and thus contribute to economic integration.
3. Exchange of technology — The movement of advanced technology between countries links
them. Innovations, research, and knowledge flow globally, impacting economic growth and
development.
4. The movement of people between countries — People usually move from one country to
another in search of better income, better jobs or better education and tourism.
Question 3.
How is information technology connected with globalisation? Would globalisation have been possible
without expansion of IT?
Answer
Globalisation would not have been possible without expansion of IT. Information technology (IT) and
globalization are deeply intertwined. Information technology plays a pivotal role in facilitating the
interconnectedness by enabling rapid communication, data exchange, and access to information
across borders. For instance:
1. IT allows instant communication through emails, video calls, and social media. This real-time
connectivity bridges geographical gaps and fosters global collaboration.
2. IT systems handle international transactions and e-banking, which forms basis of trade.
3. IT optimizes supply chains, tracking goods from production to delivery globally.
Question 4
What do you understand by liberalisation of foreign trade?
Answer
Trade liberalisation refers to the removal or reduction of restrictions and barriers set by the
government, on exchange of goods between nations. With liberalisation of trade, businesses are
allowed to make decisions freely about what they wish to import or export. Liberalisation of foreign
trade involves reducing or eliminating tariffs/taxes on imports and exports, reduce quotas and other
restrictions.
Question 5
How has technology contributed to globalization?
1. TECHNOLOGY:
Better technology has increased the pace of globalization. It has made the movement of goods faster
at a lower price.
For eg: Containers for Transport of goods.
Goods are placed in containers that can be loaded onto ships, railways, planes and trucks.
Containers have reduce the port handling costs
Increased the speed to reach markets.
The cost of air transport has fallen.
1.1 IMPROVED INFORMATION AND COMMUNICATION TECHNOLOGY:
Telecommunication has improved.
Internet, computers, telephones, telegraph, fax, etc are used to contact people, communicate with
people from remote areas, and access information faster.
SATELLITE COMMUNICATION DEVICES ARE ALSO USED.
INTERNET HAS ENABLED PEOPLE TO:
EMAILS AND VOICE MAILS: SEND INSTANT ELECTRONIC MAILS (EMAILS) and VOICE MAILS at a
negligible cost.
ACCESS TO INFO : Find information on anything and everything instantly.