What is Globalisation: UGC NET Commerce Notes & Study Material

Globalization means that countries and people around the world are becoming more connected. This happens when goods, services, money, ideas, and technology are shared between different countries. Thanks to advances in transportation and communication, it is easier to trade and share information with people from all over the world. Globalization changes how countries work together and how people live. It affects how businesses run, how cultures mix, and how societies grow. In simple terms, globalization makes the world smaller and more connected.

Globalisation is a very vital topic to be studied for the commerce related exams such as the UGC-NET Commerce Examinations. How to calculate total variable cost is one of the most asked topics in international business and learners are expected to know this topic in depth for UGC NET Exams.

In this article, the learners will be able to know about the following:

• What is Globalisation?
• Impact of Globalisation
• Advantages and Disadvantages of Globalisation

What is Globalisation?

Globalization means the increasing connections and interactions between countries and people all around the world. It involves the sharing of goods, services, money, ideas, and technology across borders. Globalization makes it easier for businesses to operate internationally, for people to communicate with each other across the globe, and for cultures to mix and exchange ideas. It's like the world becoming a smaller place because of advancements in transportation and technology.

Impact of Globalisation

Globalization simply means the world is getting interconnected. It impacts the relations between countries, businesses, and people in every aspect of their lives. Let us see how globalization impacts the various aspects of our lives.

Impact on Economy

Globalization has made trade between countries easier and faster. This helps countries to get goods and services from all over the world. It has also made businesses more competitive by opening up international markets. More people can find jobs in different countries due to the global economy. However, globalization can also lead to some local businesses struggling to compete. In some cases, it can cause inequality, with the rich benefiting more than the poor.

Impact on Culture

Globalization disseminates culture, ideas, and traditions around the world from one country to another. That way, there is a tendency for people to learn about others' cultures. People can indulge in food, music, or movies from a different country. However, that can sometimes erase local traditions. Some people can feel that foreign influences are replacing their culture. The influence can even make people forget who they are, culturally, because of other's influence.

Impact on Technology

Globalization helps spread new technology across the world. People can access the latest technology no matter where they live. This has made life easier and faster, with advances in communication and transportation. It also allows people in different countries to work together on big projects. However, technology can also create problems, like job losses as machines replace human workers. It can also increase the gap between countries with good technology and those without.

Impact on Environment

Globalization has led to increased travel and trade, which can harm the environment. More factories and transportation mean more pollution and waste. It can also result in the overuse of natural resources, like water and energy. On the other hand, globalization has also helped spread awareness about environmental issues. People from different countries work together to solve global problems, like climate change. However, balancing economic growth and protecting the environment remains a big challenge.

Advantages and Disadvantages of Globalisation

Globalization is that which has connected the world to each other. It has brought changes in how people, companies, and countries work together. Let's take a look at both the positive and negative sides of globalization.

Benefits of Globalization

One good thing about globalization is that it makes buying and selling easier between countries. This allows people to obtain goods from around the world. Globalization helps in the knowledge of different cultures, therefore trying out different foods and traditions. It generates employment and better living conditions for many people in various countries. It makes possible the sharing of new ideas and technologies to enhance life. Globalization can help solve big problems, like finding cures for diseases.

Disadvantages of Globalization

One of the problems with globalization is that little businesses cannot keep up with large companies. Jobs are sometimes outsourced to foreign countries where there is cheaper labor. This has made it even more challenging to get jobs back in one's own country. Globalization increases pollution because the factories and mode of transportation grow. It even makes people lose their culture. Lastly, not everyone benefits equally, and the rich may get richer while the poor stay the same.

Liberalisation Privatisation and Globalisation

Liberalisation, privatisation, and globalisation are the great changes occurring in many countries. These three aspects help the country grow and get stronger. Now, let us learn how they are interlinked with each other and what they exactly mean.

Liberalisation

Liberalisation is doing something to ease business operations. Whenever countries liberalize, they make rules and regulations lessen in businesses. It helps grow the businesses by allowing them to compete with one another. Countries are also helped in trading their goods and services with other countries. When the businesses are free, people will have more goods to buy at affordable prices. Liberalization connects the economy of a country with the rest of the world.

Privatization

Privatization is the act of the government selling businesses to private firms. This will improve the businesses so that they function better. The private companies also try to give better services for more profits. Privatized businesses tend to grow faster as compared to public ones. It can invest in other crucial areas such as health or education when the money received from privatizing is used for investment. This allows countries to establish contact with business firms in other countries.

Globalisation

Globalisation means that countries around the world are more connected. It makes it easier for countries to trade and share ideas. With globalisation, businesses can sell their products to people in other countries. It also allows people to travel and work in different places. Globalisation helps countries learn from each other and share new technologies. It brings people and countries closer together.

Globalisation and the Indian Economy

Globalisation has brought many changes to the Indian economy. It has helped India connect more with the world and grow its businesses. Let’s look at how globalisation affects India’s economy in different ways.

Impact on Trade

Globalisation has made it easier for India to trade goods and services with other countries. Indian businesses can now sell their products in international markets. This has led to more variety and lower prices for consumers in India. Many foreign companies have also started selling their goods in India. It has also opened the door for Indian companies to grow and invest in other countries. Trade has become an important part of India’s economy because of globalisation.

Impact on Jobs

Globalisation has created many new jobs in India. Companies from around the world have opened offices in India, bringing new job opportunities. It has also led to more people working in industries like technology and manufacturing. While some jobs have moved to other countries, many more jobs have been created in India. This has helped reduce poverty and improve living standards for many people. However, not everyone benefits equally from these new job opportunities.

Impact on Culture

Globalisation has brought many new cultures and ideas to India. People can now enjoy food, music, and entertainment from around the world. It has also led to the spread of international brands and products. While this has made life more interesting, it can sometimes cause local cultures and traditions to fade. Globalisation encourages people to think globally, but it also challenges them to preserve their own cultures. It is important for India to find a balance between embracing new ideas and protecting its traditions.

Impact on Technology

Globalisation has brought new technology to India, making life easier and faster. Indian companies can now use the latest technologies to improve their products and services. It has also allowed people in India to communicate and share ideas with others around the world. The rise of the internet and mobile phones is a big part of this change. Globalisation has helped India’s technology sector grow and become a major part of the global market. However, not everyone in India has equal access to this technology.

Conclusion

Globalisation is the process of countries and people becoming more connected. It happens through trade, travel, technology, and communication. With globalisation, goods and services can move easily between countries. People can share ideas, cultures, and information faster than ever before. Businesses can sell their products in other countries, and workers can find jobs around the world. Globalisation has helped improve economies but also brings challenges, like cultural changes and job competition.

Globalisation is a vital topic as per several competitive exams. It would help if you learned other similar topics with the Testbook App.