CH-

16:GLOBALI
SATI
ON

A.LongAnswerQuest
ions

1.Expl
aint
hecausesandci
rcumst
ancesl
eadi
ngt
oGl
obal
i
sat
ion.

Thecreditforcoi
ningt
het
erm"Gl
obali
sat
ion"goest
oHar v
ardProf
.Theodor
eLevit
t.I
tis
aprocesswher ei
nthewholewor
ldi
str
eatedasasinglev
il
lage.
Ithasgr
ownduetofol
lowing
ci
rcumstances:

i
)Dev
elopmenti
nthef
iel
dsofsci
enceandt
echnol
ogy
.

i
i
)Col
lapseofcommuni
sm andt
heendofCol
dWar
.

i
i
i)Rev
olut
ioni
ninf
ormat
iont
echnol
ogyandel
ect
roni
cmedi
a.

i
v)Adv
ancementi
nthef
iel
dsoft
ranspor
tandcommuni
cat
ion.

v)Gr
owt
hofMNCsandef
for
tsmadebydev
elopednat
ionst
omaket
hewhol
ewor
ldone
si
ngl
emarket
.

v
i)I
ncr
easedf
reef
lowofcapi
tal
andgoods.

v
ii
)Incr
easedi
nter
dependenceofnat
ions.

Globali
sati
onisnotcausedbyasi nglefactor
.Int
oday'scontext
,technologyisthemost
cri
ti
calelement.Theinv
entionoftelegr
aph,tel
ephoneandmi crochi
phasr evolut
ioni
zed
communi cati
onbetweenv ari
ousglobalfact
ors.Thus,
technologyhasaffectedbothour
personalandcoll
ecti
veli
ves.

Global
isati
on,howev er
,hasj ustnotemer gedasar esultofimprovedcommuni cat i
on.
Whati ssignif
icantforpeopleistor ecogniset hei nter
connect ionswiththerestofthewor l
d.
Forinstance,eventsinonepar toft hewor l
daf f ectotherpar tsofthewor l
dtoo.Here,wecan
cit
et heexampl eofBirdFluorSARSorCor onaVi r
uswhi chi snotconfinedtoonlyonenation.
Ithasaf f
ectedthewor ldasawhol e.Likewise, anymaj oreconomi ceventwouldhav ean
i
mmedi ateimpactonl ocal
,regional,nati
onalandi nternati
onalenv i
ronmentatthegl oball
evel
.

2.Exami
net
hepol
it
icalconsequencesofGl
obal
isat
ion.

Pol
it
icalcausesofGl
obal
isat
ionwer
emany
.Theyar
eexpl
ainedbel
ow:

A)Reduct
ioni
nStat
e'sWel
far
eFuncti
ons:Undert
hepressureofI
MFandWor l
dBank,t
he
gover
nmentsarewi
thdr
awi
ngfrom manywelf
areact
ivi
ti
es.Thedevel
opi
ngcount
ri
esneeded
aidandloanst
omeett heirf
inanci
alcri
sis.TheI
MFadv ancedl
oansandgrantstothese
countri
esontheconditi
onthattheyreducedsubsi
diesonhousi
ng,educati
on,
etc.I
tmeant
thatcount
ri
esaccept
ingIMFai dwereforcedtogiv
eupmanyoft hei
rwelfaref
uncti
ons.

B)Gl
obal i
sat
ionaffectsStateSoverei
gnty:Despiteglobali
sat
ion,t
herehasbeenmuchdecl i
ne
i
nState'srol
eininternat
ionalpol
it
ics.Ev
enifast atefail
edtopreventaciv
ilwarortoprot
ect
i
tsci
tizensfrom anarchy,i
twouldtrytoavoi
dot herState'
sinter
venti
onatallcost
s.Suchan
i
nter
ventionisregardedas" ani
nsultonnati
onal soverei
gnty"
.

C)Globali
sat i
onhasr einf
orcedSt ate'sCapabili
ti
es:State'
scapabil
it
iesasami li
tarypower
haveimprov edtoalar geextent.Ani mportantreasonformakingthem morepower fulist
he
i
mpr ovedtechnologyt hataddedt othedest ruct
ivepowerofweaponsatt hei
rdisposal.
Secondly,
thest at
ehasnowbet teraccesst oinfor
mation.The'i
nformati
onrich'statesmay
governbetterthantheirearl
iercount erpar
ts.

3.Di
scusst
heeconomi
cconsequencesofGl
obal
isat
ionwi
thspeci
alr
efer
encet
o:

(
A)I
tsCr
it
ici
sm

(
B)I
tsGai
nsorAdv
ant
ages

Gl
obal
isat
ionhasi
tscr
it
ici
sm ont
hef
oll
owi
ngr
easons:

a)Gl
obali
sati
onhasincreasedmiserybecauseofSt ate'
swit
hdrawalfrom wel
fareservi
ces.
Thepoorpeopleneededthe"Social
Saf et
yNet s",i
.e.
,stat
esubsidi
esoneducat i
on,housing
andheal
thtocovertheI'
llef
fect
sofGl obali
sation.Unfort
unat
elyforthepoor,
therehasbeena
decl
inei
nState'
sexpenditur
eonser vi
ces,suchasheal thandeducati
on.

b)Therehasbeenadangeroffr
eetradeforthepooranddev el
opingnati
ons.Thisi
sbecause,
gl
obalisat
ionf
avour
sforthemajordevel
opedcountri
es,suchasAmer icaorJapanorev en
China.TheUSGovernmentgav
ehugesubsi di
estoit
sf ar
mers.Thereby,thei
rfar
m products
aremuchcheaperascomparedtothoseofdev el
opi
ngcountr i
es.

c)Global
isat
ionhasalsol
edtoNeo-col
onisat
ion,i
.e.,
economi
ccontr
oloverpoornat
ions.
Economicpolici
esofundevel
opedcount
ri
esar ebeingfr
amedinaccordancewit
hthe
di
recti
onsofWTOandWor ldBank.

d)Fi
nal
ly
,theopponent
sofglobal
isat
ionhav
ebeenor
gani
singmassi
vepr
otest
sand
demonst
rati
onsagai
nstIMFandWTO.

Inspit
eofi
tssev
erecr
it
ici
sm,
ther
ear
esomear
gument
sthatar
eadv
ancedi
nfav
ourof
gl
obal
isati
on:

a)Theadv antageofglobali
sati
onisthat
, t
heindust
ri
alist
shav enoopti
onbuttocompetewit
h
theglobalbusinessmen.Compet i
ti
onwillenhanceproducti
vit
y.Morev
er,gl
obal
isat
ional
lows
consumer stoenjoyawi derr
angeofgoodsandser vicesatlowercost
s.
b)Global
isati
onhasalsoledtoi
ncr
easeint
erconnect
ednessamongpeopl eandnat
ions.Thi
s
i
spossiblebecauseofanadvancedinf
ormati
onandcommuni cat
ions
technol
ogy,i
nter
connect
ednessbetweenpersonsofdif
fer
entnat
ional
it
ieshavei
ncreased.

c)Lastl
y,whatevermaybet hedrawbacksofGl obal
isati
on,i
tisanirr
ever
sibleprocess.To
quoteBil
lCli
nton,"iti
snotapolicychoice,i
tisafact".Theref
ore,
whatdev elopi
ngnations
shoulddoistostrict
lycheckandcontrolit
snegativ
eef fect
s.

4.Exami
net
hecul
tur
alconsequencesofGl
obal
isat
ion.

Globalisationhasal soaffectedcul tureinmanyway s.Ithasaf fectedrdomest i

cl i
fe,food,
drink,dressandi deas.Ithasev enaffectedpeopl e'
spr eferencesl eadingt othefeart hatit
threatenswor ldcul t
ur e.Thisfearistruet osomeext entasgl obalisationhasl edtor iseofa
uniform cultureknownascul turalhomogeni zati
on.Inreality,iti
st hei mposi ti
onoft he
West erncultureont her estofthewor l
d.UShegemonycanbeseeni nv ari
ousculturesatt he
moment .Wecant aket heexampl eoft hecultureofwear i
ngJeansort heusageof' fastfoods'
l
ikebur ger,etc.toshowt hepower ful
inf l
uenceofAmer icancul t
ure.The' McDonal dlisati
on'of
thewor ldisagoodi nstancetoshowt hegr owingeffectofAmer icancul t
ure.Thi
s
phenomenoni sdanger ousasi tleadst otheshr i
nkingofr ichcul turalher i
tageallaroundt he
globe.

Howev er,t
hisdoesnotmeant hatcult
uralef
fectsofGl obali
sati
onar eonlynegati
ve.
Cultureisady namicconcept.All
cul t
uresgetsomeout sideinfl
uencesaswel l
.Atti
mes, t
hese
externali
nfluencesevenenlargeourchoi ceandmodi fyourcul t
urewi t
houtoverhaul
ingthe
entir
et r
adit
ionalone.Li
kewise,Jeanscanev enbewor nwi t
haKhadiKur t
a.Thisisaunique
combi nati
onofanout sideandat radit
ionalcul
tur
e.Inf act,t
hisnewi nter
mingli
nghasbeen
exportedtot heUSA.Nowwecanseey oungAmer i
canswear i
ngBlueJeansandKhadiKur ta.

Thus,gl
obali
sat
ionmakesourcul
turemor edisti
nct
iveanduniqueintoday
'sworld.Thi
s
pr
ocessisknowntobeacultur
alhet
eroginisati
on.Havingsai
dthis,i
tcannotbedeniedthat
di
ff
erencesinpowerremai
nwhencultur
ei ntermingl
e,butcul
tur
alexchangeisneveraone
wayprocess.

5.Whathasbeent hei
mpactofGlobal
isat
iononIndi
aneconomy?Onwhatgr
ounds
Global
isat
ionhasbeencr
it
ici
zedbothbytheLeft
-wingandtheRi
ght
-wi
ngwri
ter
sinIndi
a?

Thei
mpact
sofGl
obal
isat
iononI
ndi
aneconomyar
edi
vi
dedundert
woheads:

Adv
ant
ages

i
)Compet
it
ioni
mpr
ovedef
fi
ciency
.
i
i
)NewTechnol
ogyandnewmar
ket
s.

i
i
i)Accesst
omuchneededFor
eigncapi
tal
forcount
ry'
sindust
ri
algr
owt
h.

i
v)I
ncr
reasei
ntheef
fi
ciencyofbanki
ngandf
inancesect
ors

v
)For
eigncapi
tall
essenedcount
ry'
sdependenceonI
MFandWor
ldBank.

Di
sadv
ant
ages

I
ndianeconomyf acedaseriouschal l
enge.Shet ookabol dsteptobesel f
-reli
ant.Sheeven
decidednott oexportgoodstoot hercountr
ieswi t
htheai mthatIndianpr oducerscouldlear
n
toproducet hi
ngs.Howev er
,thepol i
cyof'protecti
onism' r
esultedindisastrousconsequences.
Whileprogresswasmadei ncertainkeyareas,thecrucialsectorsofheal t
h, housingand
pri
mar yeducationwereneglected.Consequent l
y,themoment um ofIndianeconomywas
quit
esluggish.

Cr
it
ici
sm

Left
ists'Crit
icism :( i)Pri
vit
isati
onmeanta' Capital
istEconomy 'i
nwhi chthecapital
ists
expl
oitedt hewor kers, (
ii
)someAmer icansandEur opeanFirmshadbeent r
yingtoobt ain
Neem andHal ditoext ractnaturalr
esourcesfrom theseplants,(
ii
i)duetothewi t
hdrawalof
subsidizedheal thser v
ices,cutsineducati
onexpensesandot herwelfar
emeasur es, thesick
andunempl oyedgr ewr estl
essi nmanycount r
ies,and(iv)newtechnology,nodoubt ,ledtoan
i
ncreasei npr oduct ion,butitalsoresult
edinunempl oymentandeconomi cinequali
ties.

Ri
ghti
sts'Cr
iti
cism :(
i)Gl
obal
isati
onposedathr
eatt
otheeconomicandsover
eigntyofthe
weakernati
ons.NowI ndi
a'
spolici
esarebei
ngfr
amedinaccor
dancewitht
heinterestand
di
rect
ionsofWTOandMNCs.

(
ii
)Wester
ncul
turesdegradedoursoci
alval
ues.Forei
gnTVchannels
andgrowingWest
erntast
esamongIndiansgi
rlsandboysareathreatt
oourcult
uralv
alues.
TVprogrammeshavebeenevenpr
omot edtheValent
ineDayascountry'
snati
onalf
esti
val.

B.Shor
tAnswerQuest
ions

6.Whati
smeantbyGl
obal
isat
ion?

Theterm"Globali
sati
on"ref
erst
otheint
egrati
onofacount r
y'seconomywi
ththeworld
economy .I
tdeal
swi ththefreefl
owofgoods,peopl
e,ser
vices,
capital
,i
deas,
andcult
ures
acrossnati
onalborders.
7.Whati
smeantbyFr
eeFl
owofCapi
tal
underaGl
obalEconomy
?

ByFr
eeFlowofCapi talunderaGlobalEconomy,i
tmeantt hattheinvestor
shavean
accesstogl
obalcapi
talmarkets.Fori
nstance,t
heUScompani esandbusinessmenar e
i
nvesti
ngmill
ionsofdoll
arsinIndiancompaniesandtheIndi
aninvest
orscanal soinv
estt
hei
r
moneyinAmer i
ca,
orotherforeigncompanies.

8.Whati
smeantbyCul
tur
alHet
erogi
nisat
ioni
nthecont
extofaGl
obal
isedWor
ld?

Cult
uralhet
erogi
nisat
ionmeanst
heexi
stenceofdi
ff
erentt
ypesofcul
tur
essi
debysi
de,
whi
chleadtoacultur
emor euni
queanddi
sti
ncti
ve.

9.Whati
sPr
otect
ioni
sm?Howt
hispol
icycoul
dpr
otectI
ndi
anI
ndust
ri
es?

Pr
otect
ioni
sm meansapol
icyt
hroughwhi
chdevel
opednat
ionsadoptmeasur
est
o
pr
otectt
heiri
nter
est
sbyplaci
ngunduedemandsondevel
opi
ngcountr
ies.

Weadoptedthepol
icyof'
Protecti
onism'inordertoprotectourownproducer
sandt
o
sav
ethem fr
om f
orei
gncompetit
ion.I
not herwords,heavytaxeswerebeinglev
iedon
i
mportedgoodstoai
dourownindust r
iessinceitr
estri
ctedimports.

10.Onwhatgr
oundsdi
dtheRi
ght
ist
sopposeGl
obal
isat
ioni
nIndi
a?

TheRi
ght
ist
scr
it
ici
zedGl
obal
isat
ionont
hef
oll
owi
nggr
ounds:

(i
)Global
isat
ionposedat
hreatt
otheeconomi
candpol
it
icalsov
erei
gnt
yoft
heweaker
nati
ons.

(
ii
)Westerncult
uresdegradedoursocialv
aluesbecausef
orei
gnTVchannelsandgr
owi
ng
West
erntastesamongI ndi
anyoungstersareathr
eattoourcul
tur
alv
alues.

C.Ver
yShor
tAnswerQuest
ions

12.Whati
smeantbyt
het
erm'
FreeFl
owofGoods'
inr
elat
iont
oGl
obal
isat
ion?

'FreeFlowofGoods'i
nrel
ati
ontoGlobal
i
sationimpl
iest
hati
thel
pst
hemov
ementof
goods,serv
icesandcapi
talbet
weennat
ionsacrossthegl
obe.
13.Whatar
e'Soci
alSaf
etyNet
s'i
nthecont
extofaWel
far
eSt
ate?

'
Soci
alSafetyNets'
arest
atesubsidi
esoneducat
ion,
housingandheal
tht
ocov
ert
he
i
l
lef
fect
sofglobal
isat
iononeconomical
lyandmargi
nali
zedsect
ionsofpeopl
e.

14.Whati
sNeo-
Col
oni
ali
sm i
nthecont
extofGl
obal
isedEconomy
?

Neo-Col
oni
ali
sm r
efer
stot
heeconomi
ccont
rol
ov erpoorernat
ionsbyt
heri
chand
power
fulnati
onsbymeansofWorl
dBankandWorl
dTradeOr gani
sati
on(WTO).

D.Mul
ti
pleChoi
ceQuest
ions:Ti
ckt
hecor
rectanswer
.

15.Whydi
dtheAmer
icanandEur
opeanFi
rmst
ryt
oobt
ainapat orneem?
entf

(
a)Becausei
thasbeaut
if
ull
eav
es

(
b)Becauset
hist
reei
snotf
oundi
ntheWest
ernWor
ld

(
c)Becauset
heWest
ernFi
rmswant
edt
oext
ractnat
uralr
esour
cesf
rom t
heneem pl
ant
s

(
d)Noneoft
heabov
e

Ans:(c)Becauset
heWest
ernFor
mswant
edt
oext
ractnat
uralr
esour
cesf
rom t
heneem
pl
ants

16.Gl
obal
i
sat
iondi
daf
fectSt
ateSov
eri
engt
y.Whatt
ypeofconsequencesi
sthi
s?

(
a)Economi
cConsequence

(
b)Pol
it
icalConsequence

(
c)Cul
tur
alConquence

(
d)Spi
ri
tual
Consequence

Ans:(
b)Pol
it
ical
Consequence

17.Lef
ti
sti
nIndi
aopposedGl
obal
isat
ion.Lef
ti
sm r
efer
stot
hebel
ief
sofwhatki
ndofper
sons?
 (
a)Thosewhosuppor
tSoci
ali
stI
deal
s

(
b)Thosewhosuppor
tthei
deal
sofCapi
tal
ism

(
c)Thosewhoar
eConser
vat
ives

(
d)Thosewhoar
eCommuni
sts

Ans:(
a)Thosewhosuppor
tSoci
ali
stI
deal
s

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