Is globalisation reversing? What is 'deglobalisation'?

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West Bengal (WBBSE)Class 12 Political Science★ 3-5 marks · CBSE Class 12 Political Science (Contemporary World Politics) Chapter 7

Globalisation

The world is more CONNECTED than ever — through trade, technology, culture, and ideas. Is globalisation a force for GOOD — lifting billions from poverty — or a source of INEQUALITY, homogenisation, and corporate power? The DEBATE. CBSE Class 12 Political Science (Contemporary World Politics).

⏱ 16 min readEasy difficulty✓ Free · NCERT-aligned

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By the end of this chapter you'll be able to…

1Define globalisation and explain its three dimensions: economic, political, and cultural
2Distinguish between cultural homogenisation and cultural hybridisation as two outcomes of cultural globalisation
3Describe India's economic transformation from the Licence Raj era to the post-1991 LPG reforms
4Evaluate the arguments of globalisation's supporters and critics, taking a balanced position
5Explain how globalisation affects state sovereignty and evaluate the claim that states are becoming less powerful

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Why this chapter matters

Globalisation is the final chapter of Contemporary World Politics and provides the conceptual framework for understanding how the world economy works. CBSE examiners test: the three dimensions of globalisation (economic, political, cultural), the homogenisation vs. hybridisation debate, India's experience before and after 1991 LPG reforms, and the debate between globalistion's supporters and critics. This chapter connects directly to the Economics subject (LPG reforms, WTO) and to current affairs (deglobalisation, supply chain disruption post-COVID).

Globalisation

Introduction

A phone designed in California, manufactured in China, running software from India. Coffee from Brazil. A Korean drama on an American platform. This is GLOBALISATION — the increasing INTERCONNECTION of the world through flows of goods, capital, technology, ideas, and people. But globalisation is CONTESTED. For some, it is the greatest force for prosperity in human history. For others, it is a source of inequality, cultural homogenisation, and corporate dominance.

1. What Is Globalisation?

Globalisation is MULTIDIMENSIONAL — not just economic:

Dimension	Example
Economic	Trade, investment, finance. A smartphone assembled in China from components made in 10+ countries.
Political	International institutions — UN, WTO, IMF. Governance BEYOND the nation-state.
Cultural	Flow of ideas, values, media. Hollywood, K-pop, yoga, global fast food.
Technological	Internet, social media, AI. Information flows across borders INSTANTLY.

Is Globalisation New?

NOT entirely. The SILK ROAD connected Eurasia for centuries. European COLONIALISM forcibly integrated the world. What IS new: the SPEED, SCALE, and DEPTH — driven by the internet, container shipping, and trade liberalisation since the 1990s.

2. Causes of Globalisation

Cause	How It Drives Globalisation
Technology	The internet, mobile phones, container ships, jet travel — 'The world has shrunk'
Trade Liberalisation	Tariffs reduced. WTO. Free trade agreements. Markets opened worldwide.
Financial Liberalisation	Capital moves across borders INSTANTLY.
Political Decisions	India (1991), China (1978). End of Cold War opened the communist bloc.

3. The Debate — For and Against

The Case FOR Globalisation

Argument	Evidence
Economic Growth	Countries that opened to trade — China, India, South Korea, Vietnam — experienced RAPID growth and poverty reduction
Technology Transfer	Farmers in Africa use mobile banking. Students access global education.
Cultural Exchange	People experience music, food, film, and ideas from everywhere.
Global Problem-Solving	Pandemics, climate change, terrorism — cannot be solved by any single country.
Consumer Choice	Vast range of goods at lower prices.

The Case AGAINST Globalisation

Argument	Evidence
Inequality	Benefits the RICH and SKILLED. Inequality has RISEN within countries.
Loss of Sovereignty	Governments constrained by markets. 'If bond markets disapprove, your currency crashes.'
Cultural Homogenisation	Global brands overwhelm local cultures. Languages and traditions ERASED.
Corporate Power	MNCs larger than many countries. Evade taxes. Exploit weak laws.
Job Loss	Manufacturing moved from the West to low-cost countries. Working class devastated.

4. Globalisation and India

Positive	Negative
IT/ITeS BOOM — India became 'back office of the world'	Small manufacturers CRUSHED by cheap Chinese imports
Hundreds of millions lifted from poverty	Farmer distress — global price volatility
Indian companies became GLOBAL players (Tata, Infosys)	'Jobless growth' — GDP grew, employment didn't
Consumer choice expanded dramatically	Inequality WIDENED — urban-rural, skilled-unskilled

5. Anti-Globalisation Resistance

Movement	What It Represents
1999 Seattle protests	WTO meeting disrupted. 'Teamsters and Turtles' — unions + environmentalists.
World Social Forum	'Another World Is Possible.' Counter to Davos.
Nationalist/Populist movements	Brexit (2016). Trump's 'America First.'

6. Exam Focus

Question Type	Marks	Likely Topics
Long Answer	6	Is globalisation a force for good? Arguments for and against
Short Answer	4	What is globalisation? Explain its dimensions
Short Answer	2	How has globalisation affected India?

Self-Test

Q1. What is GLOBALISATION? Explain its dimensions. A1. The increasing INTERCONNECTION of the world through: (1) ECONOMIC — trade, investment, finance. (2) POLITICAL — international institutions (UN, WTO, IMF). Governance beyond the nation-state. (3) CULTURAL — flow of ideas, values, media, lifestyles. (4) TECHNOLOGICAL — internet, social media, AI. CAUSES: technology, trade liberalisation, political decisions (India 1991, China 1978), end of Cold War.

Q2. Evaluate arguments FOR and AGAINST globalisation. A2. FOR: Rapid growth and poverty reduction in countries that opened to trade. Technology transfer. Cultural exchange. Enables collective action on global problems. Consumer choice and lower prices. AGAINST: Rising INEQUALITY within countries. Loss of national SOVEREIGNTY — markets constrain democratic choices. Cultural HOMOGENISATION. Corporate POWER — MNCs evade taxes. Job losses in developed countries. CONCLUSION: Globalisation's effects depend on HOW it is governed. Unregulated = benefits the powerful. Well-governed (with labour/environmental standards, fair trade, safety nets) = can benefit all.

Key formulas & results

Everything you need to memorise, in one card. Screenshot this for revision.

Three Dimensions of Globalisation

1. ECONOMIC GLOBALISATION: The expansion of international trade, investment, and finance across borders. KEY DRIVERS: Trade liberalisation (WTO — lower tariffs). Foreign Direct Investment (multinational companies investing abroad). Global supply chains (an iPhone: designed in USA, components from South Korea and Japan, assembled in China — no single country product). MNCs (Multinational Corporations): operate in multiple countries; the 100 largest MNCs account for ~30% of global GDP. OUTCOME: World trade grew from $2 trillion (1980) to ~$25 trillion (2023). 2. POLITICAL GLOBALISATION: The growth of international institutions (UN, WTO, IMF, World Bank, International Criminal Court) that constrain what individual states can do. States must follow WTO rules. They are subject to credit rating agencies (Moody's, S&P). The EU is the most advanced example — member states have ceded significant sovereignty to EU institutions. OUTCOME: State sovereignty is 'pooled' — shared with international institutions. 3. CULTURAL GLOBALISATION: The spread of cultural practices, products, and ideas across borders. EXAMPLES: McDonald's in India. Korean pop (K-pop) in Brazil. Bollywood in Southeast Asia. American movies globally. DEBATE: HOMOGENISATION ('McDonaldisation') — the fear that global culture is becoming uniform, dominated by Western (especially American) norms. HYBRIDISATION — cultures mix and create new forms. Chicken tikka masala (British-Indian fusion). Jollof rice (West African) now popular in UK. Bollywood-Hollywood fusion films. The actual outcome is usually HYBRIDISATION, not pure homogenisation.

For CBSE, three dimensions = Economic + Political + Cultural. For cultural globalisation: homogenisation (fear of uniformity) vs. hybridisation (the actual outcome — cultures mix and create new forms). One example for each dimension earns full marks.

India and Globalisation — Before and After 1991

PRE-1991 INDIA: LICENCE RAJ — complex system of licences, quotas, and permits controlled all economic activity. New industries needed government permission. Foreign companies faced severe restrictions. High import tariffs (~100–300% on many goods). Public sector ('commanding heights') dominated heavy industry, banking, insurance, telecoms. Annual GDP growth: ~3.5% — dubbed the 'Hindu rate of growth.' PRE-1991 CRISIS: Balance of Payments crisis in 1991. India's foreign exchange reserves: ~$1.2 billion (2 weeks of imports). India was forced to pledge gold with the Bank of England as collateral. The IMF bail-out came with conditions. LPG REFORMS (1991): PM NARASIMHA RAO + FM MANMOHAN SINGH. LIBERALISATION: Industrial licensing abolished for most industries. FDI allowed in most sectors. Import tariffs reduced dramatically. PRIVATISATION: Public sector disinvestment began. Government divested stakes in PSUs. GLOBALISATION: India opened to world trade and investment. Export processing zones. IT sector grew rapidly (deregulation of telecom sector from mid-1990s). RESULTS: GDP growth averaged ~6–7% in the 1990s–2000s (from 3.5%). IT/BPO boom: India became the world's 'back office.' India's share of global services exports grew rapidly. Indian companies went global (Tata acquired Jaguar Land Rover and Corus Steel; Infosys listed on NASDAQ). UNEVEN BENEFITS: Formal sector thrived; informal sector (90% of workers) saw limited gains. Agriculture relatively neglected. Inequality rose. But overall: 1991 is India's economic watershed — before and after.

1991 facts: PM = P.V. Narasimha Rao, FM = Manmohan Singh (NOT Narasimha Rao's finance minister in later periods). LPG = Liberalisation + Privatisation + Globalisation. Pre-1991: 'Hindu rate of growth' = ~3.5%/year. Post-1991: ~6–7%. This contrast is a CBSE favourite.

Globalisation — Supporters vs Critics

SUPPORTERS SAY: (1) GROWTH AND POVERTY REDUCTION: China and India have lifted ~1 billion people out of poverty through export-led growth. South Korea and Taiwan became rich through globalisation. (2) CHEAPER GOODS: Global supply chains lower costs. Consumers benefit from imported goods. (3) TECHNOLOGY TRANSFER: Developing countries gain access to advanced technology through FDI. (4) PEACE THROUGH INTERDEPENDENCE: 'Countries that trade don't fight.' Economic interdependence raises the cost of war. (Kant's democratic peace; Montesquieu's 'doux commerce'). (5) CULTURAL ENRICHMENT: New ideas, music, food, art cross borders. CRITICS SAY: (1) INEQUALITY: Globalisation benefits rich countries and MNCs disproportionately. Within countries, top 1% capture most gains; workers face stagnant wages. (2) JOB LOSSES: Manufacturing jobs in rich countries outsourced to cheaper countries. 'Rust Belt' deindustrialisation. (3) CULTURAL IMPERIALISM: American culture dominates. Local traditions lost. Hollywood kills local film industries. (4) EXPLOITATION: Workers in poor countries (garment factories in Bangladesh, electronics factories in China) face poor conditions for low wages — 'sweatshops.' (5) VULNERABILITY: COVID-19 and Russia-Ukraine war showed that global supply chain dependence creates fragility. 'Just-in-time' supply chains broke down. NUANCED POSITION (CBSE-recommended): Globalisation is neither purely good nor purely bad. It is a FORCE that can be SHAPED by policy. The question is not 'globalisation yes or no' but 'whose globalisation?' and 'for whose benefit?'

CBSE questions on globalisation debate expect a BALANCED answer: give 2–3 points for each side, then a balanced conclusion. Pure advocacy for either side loses marks. The 'nuanced' position = policy can shape globalisation's impact.

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Common mistakes & fixes

These are the exact errors that cost students marks in board exams. Read them once, save yourself the trouble.

WATCH OUT

✗ Saying cultural globalisation leads to complete homogenisation (all cultures become the same)

✓ Cultural globalisation does NOT lead to complete homogenisation. The actual outcome is more often HYBRIDISATION — cultures mix and create new hybrid forms. Examples: chicken tikka masala (British-Indian); K-pop with American hip-hop beats; Bollywood adopting Hollywood production techniques. Local cultures are resilient — they absorb global influences and transform them. CBSE answers must acknowledge both homogenisation and hybridisation, then argue that hybridisation is the more accurate description of what actually happens.

WATCH OUT

✗ Saying globalisation has eliminated the nation-state

✓ Globalisation has CONSTRAINED state sovereignty but has NOT eliminated nation-states. States still make laws, collect taxes, maintain armies, and set economic policy. The EU is the most integrated example — member states have ceded significant sovereignty — but even EU member states remain independent nations. The COVID-19 pandemic showed that when crises hit, nation-states respond first (closing borders, producing vaccines nationally). Globalisation transformed the state — it didn't eliminate it.

NCERT exercises

Every NCERT exercise from this chapter — what it covers and how many questions to expect.

NCERT Ex s

NCERT Exercises

Questions on defining globalisation; three dimensions of globalisation; homogenisation vs hybridisation; supporters and critics debate; India's 1991 reforms and globalisation; whether states are becoming less powerful due to globalisation

Questions

Practice problems

Work through this chapter's problems as a readiness check — reveal each solution, mark yourself honestly, and get your gap report at the end.

Readiness check

Are you exam-ready for Globalisation?

3 problems from this chapter. Try each one, reveal the worked solution, mark yourself honestly — get your gap report at the end.

3 questions~2 min worth ~5 marks in West Bengal (WBBSE) exams

5-minute revision

The whole chapter, distilled. Read this the night before the exam.

•Globalisation = increasing interconnection across trade, investment, culture, and information.
•Three dimensions: Economic (WTO, FDI, MNCs, supply chains), Political (international institutions, pooled sovereignty), Cultural (media, food, music spread globally).
•Cultural homogenisation (McDonaldisation fear) vs hybridisation (actual outcome: cultures mix). Hybridisation examples: K-pop, McAloo Tikki, Bollywood-Hollywood.
•India pre-1991: Licence Raj. High tariffs. Public sector dominated. ~3.5% GDP growth ('Hindu rate of growth').
•1991 crisis: BOP crisis. Reserves = $1.2B. Gold pledged. IMF bailout.
•1991 LPG reforms: PM Narasimha Rao + FM Manmohan Singh. Liberalisation + Privatisation + Globalisation.
•Post-1991 gains: GDP 6-7%. IT boom (Bengaluru, Hyderabad). Indian cos global (Tata, Infosys). Poverty fell.
•Post-1991 concerns: inequality rose. Agriculture neglected. Informal sector (90% of workers) gained less.
•Globalisation supporters: poverty reduction, growth, technology, peace. Critics: inequality, job loss, culture, environment.
•BALANCED ANSWER: globalisation is a force that can be shaped. Question: whose globalisation? On whose terms?

West Bengal (WBBSE) marks blueprint

Where the marks come from in this chapter — so you can plan your prep.

Typical chapter weightage: 3-5 marks

Question type	Marks each	Typical count	What it tests
Short Answer	3	1	Three dimensions of globalisation; homogenisation vs hybridisation; 1991 LPG reforms summary; define globalisation
Long Answer	5	0-1	India's pre and post 1991 comparison; balanced assessment of globalisation; whether states are weakening; supporters vs critics

Prep strategy

Three dimensions: Economic (trade, FDI, MNCs, supply chains), Political (international institutions erode state sovereignty), Cultural (homogenisation vs hybridisation). One example per dimension.
Homogenisation vs hybridisation: homogenisation = McDonaldisation (fear: world becomes uniform). Hybridisation = what actually happens (cultures blend, new forms emerge). Example: McAloo Tikki = global brand + local taste.
1991 India: PM = Narasimha Rao, FM = Manmohan Singh, LPG reforms, 'Licence Raj' abolished, GDP from 3.5% to 6-7%.

Where this shows up in the real world

This chapter isn't just an exam topic — it lives in the world around you.

India's IT Sector — Globalisation's Success Story

India's IT and BPO sector is arguably the most dramatic success story of the 1991 globalisation reforms. From near-zero IT exports in 1991, India's technology services exports reached $245 billion in FY 2024 (NASSCOM). Over 5 million people work directly in the sector; another 10+ million in indirect roles. India's time-zone advantage (covering US night-time hours), large English-speaking graduate pool, and government support (Software Technology Parks of India) created a $245 billion industry from scratch in 30 years. The sector accounts for ~8% of India's GDP and drives India's foreign exchange earnings. This is economic globalisation's tangible impact on millions of Indian families — the chapter's themes made real.

Exam strategy

Battle-tested tips from teachers and toppers for this chapter.

For 'critics of globalisation' — always give specific examples: Rana Plaza (worker exploitation), US Rust Belt (job losses), Maldives language/culture erosion (cultural globalisation). Specific examples convert a generic answer into a high-scoring one.

The balanced conclusion must end with: 'Globalisation is not good or bad — it is a force that can be shaped by policy.' Then give ONE policy example (labour standards, progressive taxation, technology sharing). This shows analytical maturity.

Going beyond the textbook

For olympiad aspirants and curious learners — topics that build on this chapter.

STRETCH

Read DANI RODRIK's 'The Globalisation Paradox' (2011) — a rigorous economic argument that deep economic globalisation is incompatible with democracy and national sovereignty. Rodrik's 'trilemma' argues that you can only have two of three simultaneously: deep globalisation, democracy, and the nation-state. If you want globalisation AND democracy, you need global governance (give up nation-state autonomy); if you want democracy AND nation-states, you need 'shallow globalisation.' His framework is the most sophisticated academic response to the anti-globalisation critique.

STRETCH

Study the rise of GLOBAL VALUE CHAINS (GVCs) and INDIA'S POSITION in them. While China inserted itself deeply into global manufacturing GVCs (electronics, garments, chemicals), India has primarily inserted into services GVCs (IT, BPO) but not manufacturing. The PLI (Production Linked Incentive) scheme is India's attempt to insert itself into manufacturing GVCs for semiconductors, batteries, and mobile phones.

Where else this chapter is tested

CBSE board isn't the only one — other exams test this chapter too.

CBSE Class 12 Board (Political Science)High

CBSE Class 12 Board (Economics)Medium

UPSC Prelims (International Relations, Economy)Medium

CUET (Political Science)Medium

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Questions students ask

The real ones — pulled from the Q&A community and tutor sessions.

Since ~2016, there are signs of 'slowbalisation' or 'deglobalisation': (1) TRADE WARS: US-China tariff escalation (Trump 2018+, Biden maintained many). (2) SUPPLY CHAIN RESHORING: Companies moving production back home or to 'friendshoring' (allies) — due to COVID disruptions and China risks. (3) POLITICAL BACKLASH: Brexit (UK left EU), rise of economic nationalism in USA, India, and Europe. (4) COVID-19: Revealed supply chain vulnerabilities. Countries prioritised domestic vaccine production. HOWEVER: Complete deglobalisation is impossible — the global economy is too integrated. What's happening is 'selective decoupling' — reducing dependence on specific countries (especially China) in strategic sectors (semiconductors, batteries, pharmaceuticals) while maintaining overall economic integration. For India: this 'friend-shoring' trend is an OPPORTUNITY — as companies leave China, some are moving to India (Apple's iPhone manufacturing in Tamil Nadu and Karnataka is a prominent example).

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