Q53
3 marksShort AnswerSection D

"New technology has helped the world to become connected." Justify the statement with suitable arguments.

Globalisation and the Indian Economy
Role of Technology in Globalisation
Official Answer

New technology connected the world mainly through faster transport and the IT revolution:

  1. Transportation: Air and sea transport became quicker and cheaper; bigger ships lowered the cost of moving goods over long distances.
  2. IT revolution: Telecommunication, computers and the internet allow instant contact and access to information from anywhere.
  3. MNCs and outsourcing: These technologies let MNCs coordinate production and services across countries, and outsource services like data entry, accounting and call centres to countries such as India.

Thus, technology made production, trade, and communication truly global, driving globalisation forward.

transportation technologyinformation technologyinternet and telecommunicationMNCsoutsourcingglobalisationcost reduction

Marking Scheme

  • 11 mark: for explaining rapid improvement in transportation technology reducing cost/time of moving goods across long distances.
  • 21 mark: for explaining the IT/communication revolution (telecom, computers, internet) enabling instant contact and information access worldwide.
  • 31 mark: for explaining how this enabled MNCs to spread production/services globally and outsourcing of services (e.g., to India), with a valid concluding link to globalisation.

Hint

Cover both transportation technology and IT/communication technology, and mention how these enabled MNCs and outsourcing to connect economies.

Quick Oral Answer

New technology, especially faster transportation and the IT/internet revolution, has connected the world by cutting the cost and time of moving goods and enabling instant communication, which allowed MNCs to spread production and outsource services like call centres to countries such as India.

Analysis & Explanation

Tests how technological progress specifically drove globalisation, not just its general effects.


Concept

  • Globalisation was enabled by two technology revolutions: transportation and information/communication technology (IT).

Key points

  • Faster, cheaper transport (air, sea, bigger ships) cut the cost/time of moving goods globally.
  • The IT revolution (telecom, computers, internet) allows instant contact and information access worldwide.
  • MNCs use these technologies to coordinate production/services across countries and outsource work (data entry, accounting, call centres) to cheaper-labour countries like India.

Common mistakes

  • Writing only about globalisation's general effects (consumer benefits, competition) instead of specifically justifying technology's role.

Real-world

  • India's IT/BPO industry, built entirely on this technological connectivity, became a major source of employment and foreign exchange after 1991.

Common Mistakes

  1. 1Writing a general answer about globalisation's benefits/impacts instead of specifically justifying the role of technology.
  2. 2Mentioning only IT/internet and omitting transportation technology, missing half the argument.
  3. 3Not giving concrete examples like outsourcing of services to India or MNC production networks.

Interesting Facts

India's IT-BPM (business process management) export industry, built on internet connectivity, grew into one of the largest sources of services exports and employment since the 1990s.

Container shipping, standardised globally from the 1960s onward, is often credited with cutting cargo handling costs and enabling the scale of modern global trade.

Many global companies now run 24-hour operations by passing work between offices in different time zones, made possible only by real-time internet and telecom links.

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Frequently Asked Questions

How has transportation technology helped globalisation?

Faster air and sea transport, along with bigger cargo ships, has reduced both the cost and time of moving goods across long distances, making international trade more efficient and profitable.

What is outsourcing and how is it linked to technology?

Outsourcing means hiring an outside company/country to perform services previously done in-house. Made possible by the internet and telecommunication technology, many countries now outsource services like data entry, accounting, and customer support to countries like India where costs are lower.