Comprehension Practice
Globalization is viewed by its proponents as a process of cementing economic, cultural and political bonds between peoples of different countries of the world. One may regard it as a process by which they are welded into a single world society, to be termed as global society. It means internationalization of production and labor leading to integration of economies of developing and developed countries into global economy. To quote Rosaberth M.Kanter, “The world is becoming a global shopping mall in which ideas and products are available everywhere at the same time”. Globalization is a natural outcome of computer networking and electronic mass communication. Information technology has made it possible for nations of the world to contact one another beyond their national borders. Besides, globalization is also promoted through the growth and proliferation of multinational companies and corporations that operate as transporter networks. Anyhow the flow of capital technology and labor across the borders of countries has accentuated the process of globalization. Deregulation, liberalism and privatization being assiduously pursued in the developing countries are some other manifestations of globalization. These countries are opening their economies to follow these trends. The size of the public sector is shrinking for the private sector to assume an increasingly important role in the economic development of the Third World countries. The downsizing of the public sector is in line with the spirit of market economy. This is suggested as a measure to cover up their fiscal deficit.
Questions & Answers
1. Define globalization.
Globalization is viewed as a process of cementing economic, cultural and political bonds between peoples of different countries of the world, leading to the internationalization of production and labor and the integration of economies into a global economy.
2. What is electronic mass communication?
Electronic mass communication, along with computer networking, is cited as a natural outcome of globalization. Information technology, which facilitates this, has made it possible for nations to contact one another beyond their national borders.
3. What does the term Third World denote?
The term Third World denotes the developing countries where deregulation, liberalism, and privatization are being pursued to promote economic development.
4. What is privatization?
Privatization is a manifestation of globalization where the size of the public sector is shrinking for the private sector to assume an increasingly important role in economic development.Question.
5. Explain ‘liberalism’ in the above context.
Liberalism is a manifestation of globalization being assiduously pursued in the developing countries, implying that these countries are opening their economies to follow this trend alongside deregulation and privatization.