Question

Explain how advancement in technology has helped the globalisation process.

How has the improvement in technology helped the globalisation of the Indian economy?

Answer 1

1. Faster, cheaper transport: Modern ships, aircraft, and improved logistics have reduced delivery times and costs, enabling firms to source parts, manufacture, and sell goods worldwide. This has expanded long-distance trade and the movement of people.
2. Instant communication and information: Computers, the internet, mobile phones, fax machines, and other telecommunications technologies enable firms, governments, and individuals to communicate and share data worldwide in real time. This enables global coordination of production, services (such as customer support and software development), and financial transactions.
3. Fragmented/global production and MNCs: Improvements in information and transport technologies enable multinational corporations to divide production across countries through outsourcing, offshoring, and joint ventures. This creates integrated global supply chains and spreads technology and investment between economies.
4. Service globalisation and remote work: Better ICT means many services, such as publishing, IT, finance, and call centres, can be produced in one country for customers in another. This has expanded trade in services, not just goods.
5. Wider consumer choice and competition: Technology lowers barriers to entry for foreign firms and enables consumers to access global brands and information, thereby increasing competition and product variety.