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what is globalization
The term 'globalisation' simply mean global interconnectedness. This meand the whole world is interconnected and it includes a number of interlinked and complex economic, technological, cultural, environmental and political processes. The entire industrialised world was hit by an economic crisis in the 1970s. Profits fell sharply and capitalist companies were forced to expand the international nature of their production and trade. This led to periodic debt crises in the developing world, and lower incomes and increased poverty, especially in Africa and Latin America. The industrial world was also hit by unemployment that began rising from the mid-1970s and remained high until the early 1990s. From the late 1970s MNCs also began to shift production operations to low-wage Asian countries. China had been cut off from the post-war world economy since its revolution in 1949. But new economic policies in China and the collapse of the Soviet Union and Soviet-style communism in Eastern Europe brought many countries back into the fold of the world economy. Wages were relatively low in countries like China. Thus they became
attractive destinations for investment by foreign MNCs competing to capture world markets. The relocation of industry to low-wage countries stimulated world trade and capital flows. In the last two decades the world’s economic geography has been transformed as countries such as India, China and Brazil have undergone rapid economic transformation.


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