Globalisation refers to the rapid spread of goods and services, technology and information, ideas and culture, trade and interactions across the world. It is the connection of different parts of the world resulting in the expansion of international cultural, informational, economic and political activities. In the early 1990s, the term globalisation was used to include economic, political, sociocultural, technological and ideological changes that occurred in the world in the post cold war era. The world has become more interconnected due to advances in technology and communication. Events in one part of the world have an impact on other parts of the world.  Changes have taken place economically and culturally.

(a) Economic Issues:

Some economic changes that have occurred due to globalisation.

1. Free flow of finance and capital – Investments provide finance and help to build industries. Indian companies both private for e.g., Tatas and government e.g., ONGC have invested in many countries in Asia, Africa and Europe. Foreign companies have also invested in India in sectors like power plants, infrastructure projects, consumer food chains, etc. This free flow of capital is both ways i.e., India to foreign countries and vice- versa. Foreign investment especially in the infrastructure sector is essential.

2. Change in the concept of trade:

• WTO – It was established in 1995 to replace GATT. The WTO is the only agency that oversees the rules of international trade settles trade disputes and organises trade negotiations and agreements.
• The scope of the term ‘trade’ has widened to include not only traditional commodities like fruits, grains, minerals, oil, etc., but also services like banking, insurance and intellectual property like trademarks.
• Use of container cargo ships to carry huge amount of goods all over the world.

3. Rise of Transnational companies for e.g., Nestle, Unilever, etc., are operate in India. Even Indian multinational companies like Wipro, Bajaj, etc., are doing well. 

This affects the economy as follows:

• Labour market – MNC’s recruit skilled and semi-skilled employees for e.g., Indian labour is employed in West Asia, Europe, USA, etc., in industrial and service sectors.
• Small shops and industries – Those stores which are efficient, continue to thrive while some industries either sell out to MNC’s or shut down.
• Agricultural Sector – Many MNC’s have introduced new technology and opened up direct markets for Indian agricultural products for e.g., India exports spices, fish, etc., to many nations.

(b) Ideological Issues – During the Cold War, East European nations, Soviet Union and China followed socialist ideology where the public sector was important. USA and West European countries were capitalist and so the private sector was important. India followed Democratic Socialism and a ‘Mixed Economy’ where both public and private sector coexisted in the economic system.

Today, there is only one dominant ideological and economic system i.e., Market Economy. However, the nature of the market economy is determined by the ideology of that country for e.g., USA has ‘capitalist market economy’, many west European countries have ‘Welfare market economy’, China has ‘socialist market economy’. The Indian system is based on ‘economic liberalism’.

(c) Social and Cultural Issues – Today a ‘global cosmopolitan culture’ has emerged i.e movement of people across the world and public awareness of global issues. This is noticed in matters like values e.g., secularism, clothing, food choices, ways of celebrating festivals, etc. There is international awareness of India’s rich cultural and historical heritage.

Similarly, westernisation and urbanisation have influenced Indian society eg breakup of the traditional joint family and rise of individualism and materialism in the country.

(d) Technological issues – Rapid advances in global communication such as Internet, satellite communication etc brought in revolutionary changes in our lives. The internet has provided search engines like ‘Google’ to find out information and has enabled social networking through micro media like Instagram, Skype, etc. All these technologies are transnational and may be positively inclined e.g., NGO’s working for humanitarian issues or negatively inclined such as terrorist organisations.