Write any two political consequences of globalisation.

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Q. Write any two political consequences of globalisation.

CBSECBSE Class XII Board 2024Subjective· 4mImportance★★★★★

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Concept understanding — Globalization State Role

Globalization and the Role of the State

Let’s start with a simple picture. Imagine a small shop in your town that sells only local goods. Then one day, it starts selling Korean skincare, Japanese electronics, and Italian pasta. That’s globalization — the growing interconnection of economies, cultures, and people across borders.

Now, who decides what that shop can import? Who sets the tax on those Korean creams? Who ensures the Japanese phone is safe to use? That’s the state — the government and its institutions.

The question is: Does globalization shrink the state’s power, or does it change what the state does?

The Intuition

Think of the state as a goalkeeper. In a local match, the goalkeeper controls the entire penalty box. But in a global match — with players from all over the world, new rules, and a bigger field — the goalkeeper can’t just stand still. They have to move, adapt, and sometimes even change their position.

Globalization doesn’t make the goalkeeper disappear. It forces them to play a different game.

The Precise Statement

Important

The role of the state in globalization is not to disappear, but to transform. The state remains the primary actor that enables, regulates, and responds to global flows of goods, capital, people, and information.

This means three things:

The state enables globalization — by signing trade agreements, opening borders, and creating laws that allow foreign investment.
The state regulates globalization — by setting tariffs, safety standards, labour laws, and environmental rules that shape how global forces operate within its territory.
The state responds to globalization — by providing social safety nets, managing currency fluctuations, and protecting domestic industries when global competition hurts local jobs.

What Changes Under Globalization

Aspect	Before Globalization	After Globalization
Trade policy	High tariffs, protected domestic industries	Lower tariffs, free trade agreements
Capital control	Strict limits on foreign investment	Open doors for foreign capital, but with regulations
Labour	Mostly domestic workforce	Migration, outsourcing, global supply chains
Sovereignty	Near-absolute control over borders	Shared sovereignty in trade blocs (e.g., EU, WTO)
State functions	Direct producer of goods	Regulator, facilitator, and safety-net provider

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Globalisation has weakened the traditional sovereignty of nation-states while simultaneously strengthening international institutions and creating new forms of global governance that operate beyond national borders.

Globalisation has fundamentally reshaped the political landscape of the modern world, altering how power is distributed and exercised both within and between nations. Two major political consequences stand out.

Erosion of State Sovereignty

The first consequence is the significant erosion of the nation-state's absolute sovereignty. Traditionally, states enjoyed supreme authority within their territorial boundaries—they could set economic policy, regulate trade, control borders, and make decisions without external interference. Globalisation has challenged this autonomy in profound ways.

International trade agreements, membership in organisations like the World Trade Organization, and participation in regional blocs such as the European Union require states to surrender portions of their decision-making power. A country cannot simply impose tariffs at will or subsidise domestic industries without facing international scrutiny or sanctions. Economic policies must now be crafted with an eye toward global markets, credit ratings by international agencies, and the reactions of foreign investors. Even domestic labour laws, environmental standards, and taxation policies come under pressure to conform to global norms.

This shift means that elected governments often find their hands tied by commitments made at the international level, leading to what some call a "democratic deficit"—decisions affecting citizens are made by distant, unelected bodies rather than national parliaments.

Rise of Supranational Governance

The second consequence is the emergence and strengthening of supranational institutions and forms of global governance. As problems like climate change, terrorism, pandemics, and financial crises transcend national borders, no single state can address them effectively alone. This reality has empowered international organisations and created new layers of political authority above the nation-state. …

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Q.Write any two political consequences of globalisation.

Erosion of State Sovereignty

Rise of Supranational Governance

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