Causes of Globalization| Class 12 Political Science Notes
Globalization refers to the integration/ linking of the economy of a nation with the world economy; Simply put globalization is a method of interaction and union among people, corporations, and governments universally. It is a multifaceted concept, that need not always be positive, it can also have negative consequences for the people. As a concept, globalization mainly deals with flows, with the most important element being worldwide inter-connectedness.
This article provides important notes on the topic of Causes of Globalization based on the chapter on Globalization as per the Class 12 Political Science NCERT textbook. Students are advised to go through this article for further details.
What is Globalization?
- Globalization refers to the flow, of ideas, capital, commodities and people across the globe.
- It has political, economic, and cultural manifestations and these must be adequately distinguished.
- Globalization deals with ‘flows’, which can be interpreted as ideas moving from one part of the world to another, commodity trading across borders, etc.
- It includes the creation of networks and pursuits, that can change social, economic, and geographical barriers.
- Globalization may not always be positive. It can have negative consequences for the people as well.
Causes of Globalization
Globalization is not the result of a single factor, but rather a consequence of multiple reasons. Cross-border trade and inter and intra-regional exchanges were always taking place from the earliest periods around the globe, however industrial and technological advancement has given a major boom to the globalization process; Technology remains a critical element. The various causes for globalization have been listed below:
1. Improved Technology and Communications
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2. Improved Transport
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3. Containerisation
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4. Free Trade Agreements
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5. Growth of Multinational Companies (MNCs)
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6. Globalization of Banking System and Financial Markets
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7. Differences in Tax Systems
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8. Less Protectionism
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9. Increased Mobility of Labor
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10. Cultural Exchange and Information Flow
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Evaluation of Globalization
- The term ‘Globalization’ is difficult to define as there are various interpretations of what people actually refer to, therefore, there are different causes that explain it.
- Improved technology is without a doubt very crucial in helping globalization; without modern technologies such as the internet and global communication, the increased interdependence of companies and countries, would not have taken place.
- There are various trade barriers still in existence and this has not stopped the growth of globalization.
- Economic policies of a nation also greatly assist in increasing globalization process.
Conclusion
There is not one single factor that is responsible for causing globalization. A combination of multiple factors has led to the rapid rise of the globalization process; Advancement in technology and communications is at the core of all the causes, coupled with liberalization of financial systems, increased mobility of labors, improvement in transportation, smoother flow of capital across economies etc. The financial and physical barriers that existed in the earlier periods have all been mostly dismantled and what lies in front of us today is one big ‘Global Village’ interconnected very closely to each other. This is not to say that there are no restrictions around the globe, the restrictions have been slightly modified in keeping up with the current times.
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Causes of Globalization- FAQs
What are the positive impacts of Globalization?
The four positive impacts of globalization are as follows:
- Creates efficient markets
- Increases competition
- Stabilizes security
- Increases wealth equality across the world
What are factors of globalization?
The following are the various factors of globalization:
- Containerisation
- Technological change
- Economies of scale
- Differences in tax systems
- Less protectionism
- Growth Strategies of Transnational and Multinational Companies.
How does globalization affect society?
Due to globalization, people can purchase cheaper goods, communicate with individuals from all over the world, and work in any country. Globalization has also opened our eyes to various cultures, which has increased people’s understanding of one another.
What is the biggest cause of globalization?
The advancement in technology and communications;, international economic integration, socio-cultural convergence, cross-border political influence, financial liberalization and the need for economies of scale are all causes of globalization.
What is the importance of Globalization?
Globalization is important to expand the markets and enable a business to make a sensible utilization of the available resources. Globalization boosts exports, discourages import, and uplifts foreign exchange and helps integrate the world economy.