How has globalisation impacted the markets near you ? Show with the help of any two examples.

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Q. How has globalisation impacted the markets near you ? Show with the help of any two examples.

CBSECBSE Class XII Board 2025Subjective· 2mImportance★★★★★

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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 transformed local markets by introducing foreign brands and products while creating new opportunities for domestic goods to reach international buyers, fundamentally reshaping what we buy, sell, and consume in our neighbourhoods.

Globalisation has woven itself into the fabric of everyday commerce, and its effects are visible in even the smallest neighbourhood markets. Walk into any local shopping area today and you will notice changes that would have been unimaginable three decades ago—changes in the products on shelves, the brands people trust, and the very nature of trade itself.

The most immediate impact is the flood of foreign goods into local markets. Supermarkets and even small kirana stores now stock products manufactured across the world. Consider the electronics section of any neighbourhood shop: mobile phones from South Korea and China, laptops assembled in Taiwan or Vietnam, and accessories made in a dozen different countries line the shelves. A middle-class family today routinely uses a Samsung television, charges their phone with a Chinese-made adapter, and perhaps owns a Japanese or German car. These products arrived because trade barriers fell, shipping costs dropped, and multinational corporations established distribution networks that reach deep into Indian towns and cities. The local market has become a window to global manufacturing, offering consumers unprecedented choice and often lower prices due to economies of scale and international competition.

But globalisation is not a one-way street. It has also opened doors for Indian products to reach foreign markets, transforming local producers into global players. Take the example of textile and garment manufacturers. Small and medium enterprises in towns across India now produce clothing not just for domestic consumption but for export to Europe, America, and the Middle East. A tailor or small factory owner in Tirupur or Ludhiana might receive orders from international brands, stitching garments that eventually appear in stores thousands of kilometres away. Similarly, agricultural products—basmati rice, spices, tea, handicrafts—find buyers abroad through export channels that simply did not exist before liberalisation. This has created employment, raised incomes in certain sectors, and given local entrepreneurs a stake in the global economy. …

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Q.How has globalisation impacted the markets near you ? Show with the help of any two examples.

Concept understanding — Globalization State Role

Globalization and the Role of the State

The Intuition

The Precise Statement

What Changes Under Globalization

Impact of Globalisation on Local Markets

Q.How has globalisation impacted the markets near you ? Show with the help of any two examples.

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