Question

Discuss some of the general changes in economic policies by govts that have contributed to globalisation. (15 marks)

**PLEASE ELABORATE THE ANSWERS

Answer 1

General changes like relaxation of foreign direct investment, liberalisation of sectors, easing corporate governance and taxation policies, inducing higher government spending on sectors, stability by government regime all have aggressively advertised for globalisation. Moreover additional benefits like lower unemployment, increasing forex reserves, reduction in current account deficit, better accessibility to goods, higher variety and quality as weel as differentiation, improved bilateral relationships have all collectively propelled for globalisation.

Moreover, adoption of expansionary fiscal policy by reducing taxes and inducing higher spending and automatic stabilizers have helped globalisation to spur enormously. Government initiatives like schemes for startups to proliferate has accentuated overall globalisation and integrating firms.

Chnages in corporate governance standards and integrated accounting standards have helped firms to look for global businesses as overall flexibility has risen substantially and easing of licensing norms for new companies have spurred overall inflow and outflow of business making globalisation happen magically.