• 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 .
Ask a doubt
Davneet Singh's photo - Co-founder, Teachoo

Made by

Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.