Everything You Need To Know About Globalization

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Globalization is an important topic to study for the UPSC Civil Services Exam because it is a complex and multifaceted phenomenon that has significant implications for the economy, culture, and politics of countries around the world. Understanding the causes and consequences of globalization can help policymakers and decision-makers develop strategies to address the challenges and opportunities that it presents.

In particular, studying globalization can help aspiring civil servants understand the complex interplay between economic, social, and cultural factors that shape the development of international trade and investment. It can also provide insight into the ways in which globalization can impact employment, wages, and other key policy areas.

Furthermore, studying globalization can help aspiring civil servants understand the role of government in shaping the global economy, and the various strategies that can be used to address the challenges and opportunities that globalization presents. This can include policies related to trade, development assistance, and social and cultural issues.

Overall, studying globalization is an important aspect of preparing for the UPSC Civil Services Exam, as it can provide a deeper understanding of the complex forces shaping the global economy and the role of government in addressing the challenges and opportunities that globalization presents.

What is Globalization?

Globalization refers to the process of increasing interconnectedness and interdependence among people, businesses, and countries around the world. It is driven by advances in transportation, communication, and technology, and it has significant implications for the economy, culture, and politics of countries around the world.

Globalization can be seen in the increasing number of international trade agreements and the growth of multinational corporations. It has also led to the growth of global supply chains, as businesses seek to take advantage of lower labor and production costs in different countries.

Globalization has both positive and negative consequences. On the positive side, it can lead to economic growth and development, as countries can specialize in the production of goods and services in which they have a comparative advantage, and trade with other countries to obtain the goods and services they need. It can also lead to increased cultural exchange and understanding, as people from different countries interact and learn from one another.

However, globalization also has negative consequences, such as the displacement of workers as industries relocate to countries with lower labor costs, and the erosion of traditional cultures as people adopt globalized consumer habits. It can also lead to income inequality, as some people and countries benefit more from globalization than others.

Consequences of Globalization:

 Political Consequences: Globalisation erodes the government’s capacity to perform its duties (that is erosion of state capacity)

Instead of benefit-directed economic and social well-being criteria, welfare states are currently being transformed into minimalist states with a focus on necessary services such as law and order.

  • The market, not welfare objectives, determines economic and social priorities.
  • The entrance and increased engagement of international businesses has hampered the ability of governments to make independent judgements.
  • However, this is not always the case, since globalisation has not always weakened state capacity, but has in certain areas augmented it.
  • The state’s hegemony remains the uncontested cornerstone of the political community.
  • In international politics, old rivalries and envy continue to exist between nations.
  • The state continues to execute its fundamental duties while retreating deliberately from areas in which it no longer intends to participate.
  • With greater capabilities for gathering information about its inhabitants, the state is in a better position
  • The state is not less capable as a result of this information; rather, it is better suited to rule.
  • As a result of the new technology, nations grew stronger than they had been in the past.

Economic Consequences: The economic impacts of globalisation are primarily concerned with the distribution of economic gains, i.e., who wins the most and who gains the least, or even who loses out.

Positive consequences:

Globalisation has resulted in an expansion in global commodities trade and a reduction in the restrictions placed by individual nations on the import of products from other nations.

Additionally, limits on cross-border capital flows have been loosened.

The flow of ideas across national boundaries was facilitated.

When deregulation occurs, globalisation results in greater economic growth and prosperity for a larger percentage of the population.

Greater international commerce allows each economy to concentrate on its strengths. This would be to everyone’s advantage.

Globalisation is inevitable, and it is futile to fight the march of time.

One of the major challenges of globalization is ensuring that its benefits are shared more equitably among people and countries. This requires addressing issues such as labor protections, environmental regulations, and the distribution of wealth and resources. It also requires addressing cultural and social issues, such as the preservation of traditional cultures and the integration of immigrants and refugees into host societies.

To address these challenges, governments and other organizations are implementing a range of strategies, including trade policies, development assistance, and social and cultural programs. For example, they may implement policies to promote fair trade, support the development of small and medium-sized enterprises, and provide education and training to workers who have been displaced by globalization. They may also implement measures to address cultural and social issues, such as language training programs and cultural exchange initiatives.

In conclusion, globalization is a complex and multifaceted phenomenon that has significant implications for the economy, culture, and politics of countries around the world. While it can bring economic growth and development, it also has negative consequences, including income inequality and the erosion of traditional cultures.

Ensuring that the benefits of globalization are shared more equitably requires addressing a range of economic, social, and cultural issues, and implementing strategies such as trade policies, development assistance, and social and cultural programs.


Globalisation is a term used to describe the interdependencies in the world of various types, viz. economic, cultural, technological and political.

Features of Globalization:

Globalization 4.0

Globalization 4.0 is the new phase of globalization in the world. It is a phase of integration of new technologies, such as artificial intelligence, the Internet of things, robotics, driverless cars, etc, into the global economy.

Globalisation can be both boon as well as bane for a country or a region.

Merits of the Globalisation:

  • Access to global markets: All the countries can access to the global markets for trade in goods and services. And also, the local markets can have better platforms to sell their products to make higher profits.
  • Technological Advancement: it has resulted in a reverse brain drain in developing countries. The electronic economy has helped in strengthening globalization and increasing the ease of doing business.
  • Improved standard of living: globalization increases the standards of living of people by raising the standards of products and services in developed or developing countries
  • Overcoming cultural barriers: Globalization opens up cultural spaces by sharing ideas and innovation at high speed with the help of technology. A greater and speedy flow of information between countries and higher cultural interaction has helped to overcome cultural barriers.
  • Economies of scale: globalization enables large companies to actualize economies of scale, leading to reductions in costs and prices, which in turn support further economic growth.

Demerits of Globalization:

  • Increasing Unemployment Rate: The outsourcing of jobs to developing countries has resulted in the loss of jobs in developed countries. As a result, some of them are now following protectionism measures; for example, the USA is restricting BPO.
  • Unequal Economic Growth: while globalization tends to increase economic growth for many countries, the economic growth is not equal; the richer countries often benefit more than developing countries.
  • Rise in communicable diseases: there is a greater threat of the spread of communicable diseases. For instance, COVID 19.
  • Exploits poorer labour markets: Globalization enables businesses to develop jobs and economic possibilities in developing countries by often offering cheap labour costs, leading to exploitation of labour by offering low wages.
  • Increase in Global Terrorism: Globalization comprises a number of penetrating mechanisms that have been exploited by terrorist networks. The use of social media networks is also a reason why terrorism has been widespread.

Impact of Globalization:

  • Change in Family Structure: the traditional joint family system in India is going through a shift towards a nuclear family system, which has led to an increase in old age homes as they are treated as burdens. The increasing number of divorce cases and extramarital affairs has led to a perceived erosion of traditional values in marriage.
  • The emergence of Global Consumer Society: globalization has led to the rise of a global consumer society with a tendency towards greater cultural homogenization.
  • Food and clothing and dialect: There is an increase in the fusion of food across the globe (McDonaldisation) and in clothing such as Indo-Western attire. The manner in which foreign languages, like French, German, and Spanish, are popular in India seems to be an effect of globalization.
  • Entertainment: Globalization has led to a more diverse range of entertainment options as content from different cultures is now widely accessible.
  • Increase in immigration and cross-cultural contacts: Immigration between countries, the establishment of free trade zones, growth of cross-cultural contacts, increase in worldwide culture, etc, is increasing due to globalization.
  • Loss to local entrepreneurs: Breaking up of barriers and protectionist measures in the name of globalization exposes the upcoming but weak indigenous entrepreneurs to the onslaught by the powerful MNCs. For Instance, the ouster of almost all Indian soft drinks companies from the market by Coke and Pepsi.
  • Boost to International Travel and Tourism: due to international business as it boosts tours and travel of a country.
  • Increase in Exports: there is a marked rise in exports of goods and services in which countries have their respective competencies.

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