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Sociology | Class 12 | Globalisation and Social Change

Introduction

The relationship and connection between the local and the global (international) markets is known as globalisation. This chapter aims to explain what globalisation is, its various aspects, and the social repercussions they have.

Sociologists and social anthropologists cannot examine society as if it were a standalone entity. This has changed as space and time have contracted. Sociologists must take into account this global interconnectedness when studying villages, families, movements, child rearing practises, work and leisure, bureaucratic organisations, or castes.

Globalization has far-reaching effects. We are all affected, but in different ways. So, while it may mean new opportunities for some, it may also mean a loss of livelihood for others.

There are contrasting opinions about how globalisation will affect society. Some people think it's important to announce a better world. Others worry that different groups of people will be significantly affected by globalisation in very different ways. They contend that while many in the wealthier segment may benefit, the situation of a sizable portion of the already marginalised population deteriorates.


Understanding Globalisation

The term "globalisation" describes the expanding social and economic ties that exist between individuals, communities, and nations of the world.

It would be incorrect to claim that economic forces alone are the sole cause of globalisation, despite the fact that they are an essential component.

It has advanced primarily due to the advancement of information and communication technologies, which have accelerated the pace and scope of human interaction worldwide.


Different Dimensions of Globalisation

Economic Dimension


Policy of liberalisation

  • Globalisation involves a stretching of social and economic relationships throughout the world. Certain economic policies encourage this stretching. In India, this process is referred to broadly as liberalisation.

  • The term "liberalisation" describes a number of political choices made by the Indian government since 1991 to expose the Indian economy to the global market. This signalled a departure from the government's earlier stated intention to exert more control over the economy.

  • As the economy became more liberalised, trade and financial regulations in India were gradually relaxed. These actions are referred to as economic reforms as well.

  • Obtaining loans from international organisations like the International Monetary Fund was another step in the liberalisation process (IMF). These loans are provided under specific terms. The government pledges to pursue specific economic measures that include a structural adjustment policy.

The transnational corporations

  • Transnational corporations (TNCs) play a significant role among the many economic factors driving globalisation. TNCs are businesses that manufacture products or market services across borders.

  • These companies could be quite small, with one or two factories located outside of the nation where they are headquartered. They might also be enormous international companies with operations all over the world.

  • Companies like Coca-Cola, General Motors, Colgate-Palmolive, Kodak, Mitsubishi, and many other large MNCs are well-known on a global scale.

The digital economy

  • Another element supporting economic globalisation is the so-called "electronic economy." International fund transfers are simple for banks, businesses, fund managers, and individual investors.

  • However, the new ability to move "electronic money" instantly comes with significant risks.

  • In India, this is frequently brought up in conversation in relation to both rising stock markets and unexpected dips brought on by foreign investors who buy stocks, sell them for a profit, and then buy more.

Knowledge economy or the Weightless Economy

  • The foundation of the global economy is no longer primarily industrial or agricultural, as it was in earlier eras.

  • The weightless economy is one where information serves as the foundation for goods, as is the case with internet-based services, media and entertainment products, and computer software.

Globalisation of finance

  • Globally integrated financial markets conduct transactions worth billions of dollars in electronic circuits in a matter of seconds.

  • The capital and security markets are open for trading around-the-clock. The major hubs for financial trading are places like New York, Tokyo, and London.

  • Mumbai is regarded as India's financial hub within the nation.

Global Communications

  • The development and improvement of technology and communication have led to numerous revolutions.

  • Multiple connections to the outside world are present in some homes and offices, including te