Which of the following is considered a key parameter of globalisation?

2026

Which of the following is considered a key parameter of globalisation?

Answer: C. Free flow of capital, technology, services, and labour across countriesConceptGlobalisation is the process through which national economies become increasingly interconnected and interdependent. Its core parameters are the…

  1. A.

    Increasing trade barriers to protect local industries

  2. B.

    Limiting international trade to domestic markets

  3. C.

    Free flow of capital, technology, services, and labour across countries

  4. D.

    Restricting movement of labour to prevent brain drain

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Show answer & explanation

Correct answer: C

Concept

Globalisation is the process through which national economies become increasingly interconnected and interdependent.

Its core parameters are the cross-border movement of goods, services, capital, technology, information, and people, together with fewer barriers to those flows.

Application

The free flow of capital, technology, services, and labour across countries directly describes cross-border integration of productive resources.

Contrast

  • Increasing trade barriers protects selected domestic industries by reducing foreign competition, but it narrows cross-border exchange.

  • Limiting international trade to domestic markets confines economic activity within national boundaries.

  • Free movement of productive resources links markets, firms, workers, and technologies across national borders.

  • Restricting labour movement reduces the international mobility of skills and workers.

Cross-check

A valid parameter of globalisation should increase international integration; freer resource flows do so, whereas the three restrictive measures reduce such integration.

Therefore, the key parameter is the free flow of capital, technology, services, and labour across countries.

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