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, socio-cultural, 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.

The Positive aspects of globalisation are -

1. It creates more employment opportunities. 

2. It encourages free trade. 

3. It leads to better choice of goods and services to the consumer. 

4. It leads to wider investments in developing countries. 

5. It enhances efficiency of the tertiary sector i.e., banking and finance. 

6. It increases purchasing power of citizens and enhances their standard of living. 

7. It increases labour productivity and reduces capital-output ratio. 

8. It helps to increase efficiency in the production system.

The negative aspects of globalisation are -

1. Globalization promotes technological adaption to increase productivity but has also resulted in loss of jobs. 

2. Local/small scale industries cannot withstand competition from the MNC’s and may be bought off or shut down. 

3. Less developed countries may become dependent on the technologically superior countries. 

4. It has caused specialization of labour and so there are few employment opportunities for unskilled labour. 

5. It has led to increased gap between rich and poor nations. 

6. It may lead to overexploitation of resources and negatively impact the environment. 

7. It leads to the harmful effects of consumerism. 

8. It may lead to reduction in social welfare schemes in both developed and developing countries.