The interconnectedness across countries on many dimensions, such as cultural, political, social and economical, is globalisation. When we talk about globalisation and the Indian Economy, we are limiting our study to the economic dimension only. The economic dimension of globalisation is the integration between countries through foreign trade and foreign investments.
Multinationals or MNCs (Multi National Corporations) as they are called play a major role in the globalisation process, connecting distant regions of the world. Integration of production and integration of markets, is the key idea behind understanding the process of globalisation and its impact.
Globalisation has been facilitated by three main factors:
Rapid improvement in technology.
Liberalisation of trade and investment policies.
International organisations such as the WTO (World Trade Organisation)