Q 1. What is Globalization? Highlight the factors which are responsible for globalization in 20th century.

Answer: Globalization is a process of interaction and integration among the people, companies and governments of different nations. It is driven by international trade and investment and is aided by information technology.

Globalization is not new and for thousands of years, people have been involved in buying and selling to each other in lands at great distances. But in the 20th century, globalization has seen a great spurt which may be attributed to various factors.

1. Since Second World War, many governments have adopted free market economic systems, leading to an increase in productive potential and which has furthered new opportunities in international trade and investment.

2. Opening up of trade and investment has led to exploration of new lands leading to human migration and growth of tourism and subsequently led the capital flow in the form of international currency.

3. Establishment of Bretton wood twins led to various international agreements and institutions, which has negotiated the barriers in commerce to promote trade and investment.

4. Advances in technology particularly in IT sector have provided new tools to consumers and investors in identifying and pursuing economic opportunities.