Globalisation
Topic: International Trade: Patterns, Ports and the WTO · NCERT: Class 12, Ch 8 "International Trade"
Meaning
Globalisation is the linking of national economies into one world system. It happens through trade, investment (money put into businesses abroad), technology and the movement of people. Faster transport and communication make it possible. It matters because a product today may be designed in one country, made in another and sold everywhere. Since 2008 it has slowed down, which is called "slowbalisation", and US tariffs from 2018 and 2025 slowed it further (verify current). NCERT also warns that rich countries should not push open other countries' markets while keeping their own protected.
Example
Indian IT services firms, many based in Bengaluru, Karnataka, sell software and back-office work to clients in the USA. Countries such as Vietnam and Mexico export goods put together in factories built with foreign money.
Don't confuse with
- Free trade: lowering trade barriers such as tariffs is only one part of globalisation. Globalisation also covers investment, technology and the movement of people.