JAIIB · IEIFS

GLOBALISATION

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is globalisation in the context of the world economy?

A

Globalisation refers to the process of integration and interaction among countries through the exchange of goods, services, capital, technology, and information, leading to increased economic interdependence across nations.

Q

What is the concept of 'Brain Drain' associated with globalisation?

A

Emigration of skilled professionals to developed countries for better opportunities.

Q

Which international body is most associated with promoting free trade and globalisation?

A

The World Trade Organization (WTO), established in 1995, is the primary international body responsible for regulating and promoting free international trade among member nations.

Q

What is the UNCTAD and its relevance to developing countries in globalisation?

A

UN body promoting trade and development interests of developing nations globally.

Q

What were the three pillars of India's 1991 economic reforms that accelerated globalisation?

A

The three pillars were Liberalisation (removing restrictions on business), Privatisation (reducing the role of the public sector), and Globalisation (integrating India's economy with the world economy), collectively known as LPG reforms.

Q

What is the 'Tobin Tax' proposed in the context of financial globalisation?

A

A tax on cross-border currency transactions to curb speculative capital flows.

Q

What is the meaning of the term 'Current Account Convertibility' in the context of globalisation?

A

Current Account Convertibility means the freedom to convert domestic currency into foreign currency for trade in goods and services, remittances, and income transfers, which India achieved in 1994 under Article VIII of the IMF.

Q

What does the term 'Trade Surplus' mean in international economics?

A

When a country's exports exceed its imports in value over a period.

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