The correct option is 1 and 3 only.
Explanation
Globalisation refers to the integration of the domestic economy with the world economy. It is a multidimensional process involving the free flow of goods, services, capital, technology, and people across national borders. It aims to create a borderless world where economic interdependence is maximized.
Statement-wise Analysis
- Statement 1 is Correct. Globalisation is fundamentally defined by the integration of markets and production across countries. This allows for the unrestricted movement of goods and services, leading to price convergence and the organization of production on a global scale.
- Statement 2 is Incorrect. Multinational Corporations (MNCs) are the key agents and drivers of globalisation. They play a central role in integrating world economies by setting up production bases in different countries to utilize cost advantages (e.g., cheap labor or raw materials). Globalisation increases, rather than excludes, the role of MNCs.
- Statement 3 is Correct. Globalisation encompasses various flows, including the movement of capital such as portfolio investment and Foreign Direct Investment (FDI). While cultural exchange is primarily a socio-cultural dimension, it is intrinsically linked to economic globalisation as the movement of people and products facilitates the exchange of ideas and cultures. In the context of the given options, where Statement 2 is definitively false, this statement is accepted as part of the broader scope of global integration.
Key Takeaway
Globalisation is driven by international trade, capital flows (FDI and Portfolio Investment), and the movement of labor/technology. Multinational Corporations (MNCs) act as the primary vehicles for this economic integration.