FACTORS THAT HAVE ENABLED GLOBALIZATION
Technology
- Rapid technological advancement has been a crucial factor in accelerating the globalization process.
- There have been several advancements in transportation technology over the last 50 years.
- This has enabled faster deliveries of commodities at a lower cost.
- Technology in the fields of telecommunications , computers, and the Internet has been evolving quickly recently.
- Communication across the globe , quick information access , and communication from remote locations are all made possible by telecommunications facilities available to people
- This has been facilitated by satellite communication devices.
- I nformation and communication technology (or IT) has played a major role in spreading out the production of services across countries.
Liberalization of foreign trade
- Trade Barriers: To regulate foreign trade, the government imposed some restrictions on trade. These restrictions are referred to as trade barriers. Example: Tax on imports.
- After India gained its independence, the Government had put barriers to foreign trade and foreign investment.
- This was considered necessary to protect the producers within the country from foreign competition.
- Some significant policy reforms were implemented in India starting about 1991 .
- The government came to the conclusion t hat Indian producers needed to start competing with those from other countries.
- As a result, many restrictions on international trade and i nvestment were lifted.
- Removing barriers or restrictions on trade set by the government is known as liberalization.
- As trade becomes more liberalized , businesses are free to choose what they want to import or export .
