In the post-industrial Revolution there was an increase in the production of goods. The European countries resorted to colonialism and imperialism in Asia and Africa to promote their trade and industries.
Decolonisation process in the post-Second World War period and loss of markets in Asia and Africa.
Neo-colonialism emerged in the form of advocacy of free-trade and free-market economy (globalisation). The rich nation formed G-7 in 1975 to further their economic interests. Thereby they secured access in the underdeveloped and the developing countries. The policy of uncontrolled trade is known as globalisation.
Expansion of economic activities beyond the geographical boundaries of the nation-states.
Creation of a global market with free circulation of resources and capital. Its ultimate aim is to create a world economy.
Accompanied by liberalisation and privatisation. The Multinational Corporations (MNCs) and Information Technology (IT) were the vehicles to promote integration of the global economy. India embraced globalisation in 1991.
The features of globalisation are as follows :
Advocacy of open-free economy. Created uneven competition between the MNCs and the indigenous industries. Foreign Direct Investment (FDI) in the developing countries. Urbanisation. Use of IT.
Advantages of globalisation :
Increase in the trade among nations. FDI in the other countries. Exchange of information. Enhanced environment awareness. Improvement in standard of living. Increase in production of goods and services by application of modern technology. Wider choice to consumers to select quality goods. Promotion of mutual understanding among the nations. Curbed irregularities in marketing of agricultural goods.
Disadvantages of globalisation :
Benefits cornered by rich. Increase in unemployment. Loss of revenue. Exploitation of natural resources in the developing countries by MNCs. Adverse effect on small scale industries. Widening of disparity between the rich and the poor nations. Degradation of human values.
Political impact of globalisation
Decline of communism / socialism. Increase in the influence of democratic system. Developing countries in clutches of MNCs. Increase in political corruption.
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