Globalisation refers to the integration between countries through foreign trade and foreign investments by multinational companies. 

• It means integrating our economy with world economy. 

• Under globalisation a country becomes economically interdependent at the global or international level. 

• This happens at various levels. 

• Producers from other countries can come and sell their goods and services in India. 

• Similarly, Indian goods and services can be sold in other countries.

Two factors that have enabled Globalisation:

(i) Information Technology — Telecommunication facilities like mobile, internet fax have helped us at negligible cost. Now a new magazine published for London readers can be designed and printed in Delhi.

(ii) Liberalisation of foreign trade and foreign investment – In India, trade barriers that were imposed after independence to protect producers’ interests in the country from foreign competition were removed after 1991. Businessmen were allowed to import or export freely.