Question

Explain the co-relation between the following:

Globalisation and Free flow of finance capital.

Answer 1

• Meaning of Globalisation: Globalisation is the fast-paced expansion of trade, technology, ideas, information, culture, and interactions on a worldwide scale.
• Impact on Financial Investments: It has encouraged the movement of financial resources, which in turn has further accelerated the process of globalisation.
• Two-Way Capital Flow: The movement of capital occurs in both directions, from India to other countries and from abroad to India. For instance, Tata’s investment in Jaguar and Land Rover in the United Kingdom is a clear example.