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Globalisation in India

India had the distinction of being the world's largest economy in the beginning of the Christianera, as it accounted for about 32.9% share of world GD and about !"% of the world #o#ulation.$! &he goods #roduced in India had long been e#orted to far off destinations across the world.$2&herefore, the conce#t of globalisation is hardly new to India.

India currently accounts for 2."% of (orld &rade )as of 2*!+, u# from !.2% in 2**- accordingto the (orld &rade rganisation )(&.$3 /ntil the liberalisation of !99!, India was largely andintentionally isolated from the world mar0ets, to #rotect its fledgling economy and to achie1eselfreliance. oreign trade was sub4ect to im#ort tariffs, e#ort taes and 5uantitati1e restrictions,while foreign direct in1estment was restricted by u##erlimit e5uity #artici#ation, restrictions ontechnology transfer, e#ort obligations and go1ernment a##ro1als6 these a##ro1als were neededfor nearly -*% of new DI in the industrial sector.$7 &he restrictions ensured that DI a1eragedonly around 82** annually between !9:+ and !99!6 a large #ercentage of the ca#ital flowsconsisted of foreign aid, commercial borrowing and de#osits of nonresident Indians.$+

India's e#orts were stagnant for the first !+ years after inde#endence, due to the #redominance of tea, 4ute and cotton manufactures, demand for which was generally inelastic. Im#orts in the same #eriod consisted #redominantly of machinery, e5ui#ment and raw materials, due to nascentindustrialisation. ;ince liberalisation, the 1alue of India's international trade has become more broadbased and has risen to -3,*:*! billion in 2**3<*7 from !2.+* billion in !9+*<+!.India's trading #artners are China, the /;, the /=>, the /?, @a#an and the >/.$- &he e#ortsduring =#ril 2**" were 8!2.3! billion u# by !-% and im#ort were 8!".-: billion with an increaseof !:.*-% o1er the #re1ious year .$"

India is a foundingmember of General =greement on &ariffs and &rade )G=&& since !97" andits successor, the (orld &rade rganisation. (hile #artici#ating acti1ely in its general councilmeetings, India has been crucial in 1oicing the concerns of the de1elo#ing world. or instance,India has continued its o##osition to the inclusion of such matters as labour and en1ironment

issues and other non-tariff barriers into the (& #olicies.Des#ite reducing im#ort restrictions se1eral times in the 2***s, India was e1aluated by the (orld&rade rganisation in 2**: as more restricti1e than similar de1elo#ing economies, such as AraBil,China, and ussia. &he (& also identified electricity shortages and inade5uate trans#ortationinfrastructure as significant constraints on trade.$!!$!2$!3 Its restricti1eness has been cited as afactor which has isolated it from theglobal financial crisis of 2**:<2**9 more than othercountries, e1en though it has reduced ongoing economic growth.$!7

Efects o globalisation on Indian society

GlobaliBation is a significant factor in com#etiti1e world that integrate and mobiliBe cultural1alues of #eo#le at global le1el. In the age of ra#id technical #rogression, many countries are

unified and transformed due to the #rocess of globaliBation. GlobaliBation has a huge im#act on

cultural, social, monetary, #olitical, and communal life of countries. =bundant theoretical studies

demonstrated that globaliBation intercedes in a cultural life of #o#ulace that raises numerous

critical issues )obertson, !992. In broad sense, the term 'globaliBation' means combination of 

economies and societies through cross country flows of information, ideas, technologies, goods,

ser1ices, ca#ital, finance and #eo#le. GlobaliBation is described by theorists as the #rocess

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through which societies and economies are integrated through cross border flows of ideas,

communication, technology, ca#ital, #eo#le, finance, goods, ser1ices and information.

Cross country incor#oration has se1eral as#ects and can be #olitical, cultural, social andor 

economic, all which e5ual globaliBation. Ee1ertheless, financial integration is the most common

as#ects. >conomic integration in1ol1es de1elo#ing a nation's economy into an international

economy. =fter (orld (ar I and II the early trends of globaliBation decreased throughout theworld due to many barriers which restricted the mo1ement of goods and ser1ices. In fact, cultural

and social integration are e1en more than economic integration. GlobaliBation increases

com#etiti1eness at com#any le1el and national le1el, which leads com#any management and

go1ernments to embrace strategies designed to increase labour effecti1eness with reference to

 #roducti1ity, 5uality and inno1ation. Generally, globaliBation in1ol1es economies that are o#ening

u# to international com#etition and that do not distinguish against international ca#ital.

Conse5uently, globaliBation is often accom#anied by a liberaliBation of the mar0ets and the

 #ri1atiBation of #roducti1e assets. Aut globaliBation also leads to unem#loyment, increasing

casual em#loyment and wea0ening labour mo1ements. &heoretical literature denotes thatGlobaliBation has made countries to realiBe that they can share their cultural 1alues and economic

echanges to #romote business and gain com#etiti1e ad1antage. &he fer1our of globaliBation has

e1en enforced Go1ernments to be tuned to the merits of a Global economy. anagement studies

ha1e defined the #rocess of globaliBation. raser )2**" e#lained that GlobaliBation is a word on

e1ery commentator's li#s nowadays, but is 1ery difficult to define satisfactorily, for it arises in so

many different contets li0e economic, sociological, #olitical, cultural and en1ironmental.

=0teruBBaman.d, 2**- stated that globaliBation is the interconnectedness of nations and regions

in economic domain, in #articular, trade financial flows and multinational cor#orations. &he

conce#t of globaliBation means that the world is getting smaller as well as bigger.=0teruBBaman.d, 2**- described that globaliBation can contribute to de1elo# #attern of cross

 border acti1ities of firms, in1ol1ing international in1estment, trade and strategic alliances for 

 #roduct de1elo#ment, #roduction, sourcing and mar0eting. &hese international acti1ities

com#anies to enter new mar0ets, to e#loit their technological and organiBational ad1antages and

to reduce business costs and ris0s. ther theorists stated that globaliBation is a social #henomenon

that defines the geogra#hical boundary in terms of many different issues. =ccording Arin0man,

2**2, globaliBation as a trium#halism light, as the #enetration of ca#italism into e1ery corner of 

the world, bringing with it the #ossibility for all of the world's #o#ulation to #artici#ate in the

fruits of the international di1ision of labour and mar0et economy. =FI, 2*!+ e#lained theglobaliBation as a #rocess of ra#id economic, cultural, and institutional integration among

countries. &his association is dri1en by the liberaliBation of trade, in1estment and ca#ital flow,

technological ad1ances, and #ressures for assimilation towards international standards.

GlobaliBation has reduced barriers between countries, thus resulting in strengthening of economic

com#etition among nations, dissemination of ad1anced management #ractices and newer forms of 

wor0 organiBation, and sharing of internationally acce#ted labour standards.

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Challenges of globalization and its effects

any theorists asserted that change in en1ironment has both #ositi1e and negati1e as#ects

)arris, 2**2. &hese stimulate dri1ing or resisting forces toward the change of the status 5uo.

&his is most ob1ious relati1e to both globaliBation, and the resulting s#read of the global

organiBation. &here are four factors that accelerate globaliBation.

&he mar0et im#erati1eH Im#act on national economies of larger, transnational mar0ets

characteriBed by free, con1ertible currencies, o#en access to ban0ing, and contracts enforceable

 by law.

&he resource im#erati1eH Growing interde#endence of nations and their acti1ities on one another,

fostered by the de#letion of natural resources, misdistributions of arable land, mineral resources,

and wealth, as well as o1er#o#ulation. &he unde1elo#ed nations need the ca#ital, technology, and

 brain#ower of the wealthier countries, while the irst (orld economies are #rogressi1ely

de#endent on the natural and human resources of the de1elo#ing nations.

&he I& im#erati1eH oderniBations in glob communications, science and technology contribute

toward uni1ersaliBation or #lanariBation.

&he ecological im#erati1eH GlobaliBation does ha1e great effect on the ecologies and

en1ironments of nations which need to safeguards that lessen the negati1e effects rather than

e#loiting without regard to such concerns.

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India was main mo1er of globaliBation. &he go1ernment of India made ma4or modifications in its

economic #olicy in !99! by which it allowed direct foreign in1estments in the country. =s a result

of this, globaliBation of the Indian Industry occurred at large scale. In India, economic e#ansion

was obser1ed in nineteenth century due to ma4or crisis led by foreign echange. &he liberaliBation

of the domestic economy and enhanced incor#oration of India with the global economy hel#ed to

ste# u# gross domestic #roduct )GD growth rates which made good #osition in global scale.

>ffects of globaliBation in Indian Industry are obser1ed as this #rocess brought in large amountsof foreign in1estments into the industry es#ecially in the A, #harmaceutical, #etroleum, and

manufacturing industries. =s a result, they boosted the Indian economy 5uite significantly. &he

 benefits of the effects of globaliBation in the Indian Industry are that many foreign com#anies set

u# industries in India, es#ecially in the #harmaceutical, A, #etroleum, manufacturing, and

chemical sectors and this hel#ed to offer great o##ortunities for em#loyment to Indian #eo#le.

=lso this hel#ed to reduce the le1el of unem#loyment and #o1erty in the country. It is obser1ed

that the ma4or forces of globaliBation in India has been in the de1elo#ment of outsourced I& and

 business #rocess outsourcing ser1ices. ;ince last many years, there is an increase of s0illed

 #rofessionals in India em#loyed by both local and foreign com#anies to ser1ice customers in the/; and >uro#e. &hese countries ta0e ad1antage of India's lower cost but highly talented and

>nglishs#ea0ing wor0 force, and utiliBes global communications technologies such as 1oiceo1er 

I )I, email and the internet, international enter#rises ha1e been able to lower their cost base

 by establishing outsourced 0nowledgewor0er o#erations in India. &he foreign com#anies brought

in highly ad1anced technology with them and this made the Indian Industry more technologically

ad1anced. GlobaliBation in India has been beneficial for com#anies that ha1e 1entured in the

Indian mar0et. It is recommended by researchers that India has to focus on fi1e im#ortant areas to

enhance its economic status. &he areas include technological entre#reneurshi#, new business

o#enings for small and medium enter#rises, the im#ortance of 5uality management, new

 #ros#ects in rural areas and #ri1atiBation of financial institutions.

In terms of e#ort and im#ort acti1ities, any Indian com#anies ha1e e#anded their business

and became famous at global le1el such as fast food, be1erages, and s#ortswear and garment

industries. ecords indicated that =griculture e#orts account for about !3 to !:% of total annual

e#ort of the country. In 2****!, agricultural #roducts 1alued at more than /;8- million were

e#orted from the country of which 23% was contributed to the marine #roducts alone. arine

 #roducts in recent years ha1e emerged as the single largest contributor to the total agricultural

e#ort form the country accounting for o1er one fifth of the total agricultural e#orts. Cereals)mostly basmati rice and nonbasmati rice, oil seeds, tea and coffee are the other #rominent

 #roducts each of which accounts for nearly + to !*% of the countries' total agricultural e#orts.

GlobaliBation s#eeded e#ort of food items in India in the form of increased consum#tion of 

meat, western fast food, sodas and cool drin0s, which may result in #ublic health crisis. &he rich

 biodi1ersity of India has yielded many healthy foods #re#ared from locally a1ailable entities. Aut

the mar0eting by ECs with large ad1ertisement cam#aigns lead the #eo#le to resort to their 

 #roducts.

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Technological and Cultural impact of globalization in India

(ith the #rocess of globaliBation, there is an access to tele1ision grew from 2*% of the urban

 #o#ulation )!99! to 9*% of the urban #o#ulation )2**9. >1en in the rural areas satellite

tele1ision has a grown u# mar0et. In the cities, Internet facility is e1erywhere and etension of 

internet facilities e1en to rural areas. &here is an increase of global food chain restaurants in the

urban areas of India. >cessi1e ulti#le mo1ie halls, big sho##ing malls and high riseresidential are seen in e1ery cities. >ntertainment sector in India has a global mar0et. =fter 

economic liberaliBation, Aollywood e#anded its area and showed a ma4or #resence in the global

scale. &he industry began to e#lore new ways to become more global and modern. In India,

modernity is obser1ed with the (est. &herefore, (estern #hiloso#hy began to be incor#orated

into Aollywood films. =s these new cultural messages began to reach the Indian #o#ulation,

Indian mo1iegoers were #ushed to ree1aluate their traditional Indian cultural ideology.

Aollywood mo1ies are also distributed and acce#ted at international le1el. Aig international

com#anies )(alt Disney, 2*th Century o, and Columbia ictures are in1esting on this sector.

amous International brands such as =rmani, Gucci, Ei0e, and mega are also ma0ingin1estment in the Indian mar0et with the changing of fashion statement of Indians.

Impact of globalization on education in India

&here is immense effects obser1ed in educational sector due to globaliBation such as literacy rate

 become high and oreign /ni1ersities are collaborating with different Indian /ni1ersities. &he

Indian educational system faces challenges of globaliBation through Information technology and

it offers o##ortunities to e1ol1e new #aradigms shifts in de1elo#mental education. &he distinction

 between formal, nonformal and informal education will 1anish when mo1e from industrial

society to information society ta0es #lace. GlobaliBation #romotes new tools and techni5ues such

as >learning, leible learning, Distance >ducation rograms and 1erseas training.

It is obser1ed in current Indian society that through globaliBation, women ha1e gained certain

o##ortunities for 4ob o#tions and to recogniBe women's rights as a #art of the human rights. &heir 

em#owerment has gi1en considerable o##ortunities and #ossibilities of im#ro1ing em#loyment

conditions through global solidarity and coordination. It is found that the growth of com#uter 

and other technologies enabled women with better waged, fle timings, and ca#acity to negotiate

their role and status in home and at cor#orate le1el.

&here are some negati1e im#act of globaliBation such as this #rocess made dis#arity between rural

and urban Indian 4oblessness, growth of slum ca#itals and threat of terrorist acti1ities.

GlobaliBation increased com#etition in the Indian mar0et between the foreign com#anies and

domestic com#anies. (ith the foreign goods being better than the Indian goods, the consumer 

 #referred to buy the foreign goods. &his reduced the amount of #rofit of the Indian Industry

com#anies. &his ha##ened mainly in the #harmaceutical, manufacturing, chemical, and steel

industries. &he negati1e >ffects of GlobaliBation on Indian Industry are that with the coming of 

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technology the number of labour re5uired are decreased and this resulted increasing

unem#loyment es#ecially in the arena of the #harmaceutical, chemical, manufacturing, and

cement industries. ;ome section of #eo#le in India that are #oor do not get benefit of 

globaliBation. &here is an increased ga# between rich and #oor that lead to some criminal

acti1ities. >thical res#onsibility of business has been reduced. =nother ma4or negati1e effect of 

globaliBation in India is that youngsters of India lea1ing their studies 1ery early and 4oining Call

centres to earn fast money reducing their social life after getting habituated with monotonouswor0. &here is an increase of e1ery daily usable commodities. &his has an ad1erse effect on

cultural as#ect. &he institution of marriage is brea0ing down at fast rate. &here are more #eo#le

a##roaching di1orce courts instead of maintaining marital life. GlobaliBation has considerable

im#act on the religious situation of India. GlobaliBation has brought about raising a #o#ulation

who is agnostic and atheist. eo#le 1isiting #laces of worshi# are reducing with time.

GlobaliBation has reduced nationalism and #atriotism in country.

It can be said that GlobaliBation is moti1ating factor in current business en1ironment. &here are

few challenges for com#anies due to globaliBation such as igration, relocation, labour shortages, com#etition, and changes in s0ills and technology. GlobaliBation #owerfully influences

the social #artners' attitudes since traditional labour relations ha1e to co#e with com#letely new

and 1ery dynamic situations. In #olitical field, globaliBation hel#s to eradicate #o1erty,

malnutrition, illiteracy, illhealth and fighting cross border terrorism and global terrorism.

Globalisation in contet of status of women im#licates the relegation of the stereoty#ic #attern of 

duties of the women li0e rearing and caring the children to the bac0 ground and ta0ing u# the

1arious di1ersified occu#ation and thus ma0ing their li1ing 5uite 1ibrant and ali1e. Globalisation

 benefits the schedule caste #eo#le in #romoting cultural homogeneity in the way of loosening of 

the ideas of #ollution and #urity and eradication of untouchability and so many sociocultural andeconomic disabilities associated with them. Globalisation of goods has de1elo#ed enthusiasm in

India for western brand names. = consumerist mentality has been carefully fostered. &his leads to

an ad1ersati1e im#act on the tendency to sa1e or the domestic accumulation of ca#ital. Fastly, in

Indian scenario, globaliBation de1elo#ed a consumer credit society. &oday, #eo#le can buy goods

and ser1ices e1en if they do not ha1e sufficient #urchasing #ower and the #ros#ect of raising a

loan has become easy in the age of globalisation. Credit cards ha1e gi1en boost to consumerism

and #ushed many households into indebtedness. =t the same time globaliBation has unfa1ourable

im#act on massmedia in India. Currently, realistic co1erage of e1ents and ha##ening doesn't

recei1e much im#ortance because it doesn't determine the standing of a news#a#er or & channel.Globalisation has brought 1iolation of 4ournalistic ethics in India.

&o summariBe, the #rocess of globaliBation has changed the industrial #attern social life of global

 #eo#le and it has immense im#act on Indian trade system. &he globaliBation of the economic,

social and cultural structures ha##ened in all ages. re1iously, the #ace of #rocess was slow.

&oday with the start of the information technology, new ways of communication ha1e made the

world a 1ery small #lace. (ith this #rocess, there is a big mar0et #lace. GlobaliBation has resulted

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in increase in the #roduction of a range of goods. ECs ha1e established manufacturing #lants all

o1er the world. It has #ositi1e effects and India will o1ercome many obstacles and ado#t global

 #olicies to e#and business at international scale. India is gaining international recognition and

strengthening in economic and #olitical areas.

Impact of globalization on Indian economy- An overview Introduction

Indian economy had e#erienced ma4or #olicy changes in early !99*s. &he new economic reform, #o#ularly 0nown as, Liberalization, Privatization and Globalization )FG model aimed atma0ing the Indian economy as fastest growing economy and globally com#etiti1e. &he series of reforms underta0en with res#ect to industrial sector, trade as well as financial sector aimed atma0ing the economy more efficient.

(ith the onset of reforms to liberaliBe the Indian economy in @uly of !99!, a new cha#ter has

dawned for India and her billion #lus #o#ulation. &his #eriod of economic transition has had atremendous im#act on the o1erall economic de1elo#ment of almost all ma4or sectors of theeconomy, and its effects o1er the last decade can hardly be o1erloo0ed. Aesides, it also mar0s thead1ent of the real integration of the Indian economy into the global economy.

&his era of reforms has also ushered in a remar0able change in the Indian mindset, as it de1iatesfrom the traditional 1alues held since Inde#endence in !97", such as self reliance and socialistic #olicies of economic de1elo#ment, which mainly due to the inward loo0ing restricti1e form of go1ernance, resulted in the isolation, o1erall bac0wardness and inefficiency of the economy,amongst a host of other #roblems. &his, des#ite the fact that India has always had the #otential to

 be on the fast trac0 to #ros#erity.

 Eow that India is in the #rocess of restructuring her economy, with as#irations of ele1ating herself from her #resent desolate #osition in the world, the need to s#eed u# her economic de1elo#mentis e1en more im#erati1e. =nd ha1ing witnessed the #ositi1e role that oreign Direct In1estment)DI has #layed in the ra#id economic growth of most of the ;outheast =sian countries and mostnotably China, India has embar0ed on an ambitious #lan to emulate the successes of her neighbors to the east and is trying to sell herself as a safe and #rofitable destination for DI.

GlobaliBation has many meanings de#ending on the contet and on the #erson who is tal0ingabout. &hough the #recise definition of globaliBation is still una1ailable a few definitions areworth 1iewing, Guy ArainbantH says that the #rocess of globaliBation not only includes o#eningu# of world trade, de1elo#ment of ad1anced means of communication, internationaliBation of financial mar0ets, growing im#ortance of ECs, #o#ulation migrations and more generallyincreased mobility of #ersons, goods, ca#ital, data and ideas but also infections, diseases and #ollution. &he term globaliBation refers to the integration of economies of the world throughuninhibited trade and financial flows, as also through mutual echange of technology and0nowledge. Ideally, it also contains free intercountry mo1ement of labor. In contet to India, thisim#lies o#ening u# the economy to foreign direct in1estment by #ro1iding facilities to foreigncom#anies to in1est in different fields of economic acti1ity in India, remo1ing constraints and

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obstacles to the entry of ECs in India, allowing Indian com#anies to enter into foreigncollaborations and also encouraging them to set u# 4oint 1entures abroad6 carrying out massi1eim#ort liberaliBation #rograms by switching o1er from 5uantitati1e restrictions to tariffs andim#ort duties, therefore globaliBation has been identified with the #olicy reforms of !99! in India.

The Important Reform Measures (Step Towards liberalization privatization and Globalization

Indian economy was in dee# crisis in @uly !99!, when foreign currency reser1es had #lummetedto almost 8! billion6 Inflation had roared to an annual rate of !" #ercent6 fiscal deficit was 1eryhigh and had become unsustainable6 foreign in1estors and EIs had lost confidence in Indian>conomy. Ca#ital was flying out of the country and we were close to defaulting on loans. =longwith these bottlenec0s at home, many unforeseeable changes swe#t the economies of nations in(estern and >astern >uro#e, ;outh >ast =sia, Fatin =merica and elsewhere, around the sametime. &hese were the economic com#ulsions at home and abroad that called for a com#leteo1erhauling of our economic #olicies and #rograms. a4or measures initiated as a #art of theliberaliBation and globaliBation strategy in the early nineties included the followingH

 !evaluation" &he first ste# towards globaliBation was ta0en with the announcement of thede1aluation of Indian currency by !:!9 #ercent against ma4or currencies in the internationalforeign echange mar0et. In fact, this measure was ta0en in order to resol1e the A crisis

 !isinvestment In order to ma0e the #rocess of globaliBation smooth, #ri1atiBation andliberaliBation #olicies are mo1ing along as well. #nder the privatization scheme, most of the

 public sector underta$in%s have been& are bein% sold to private sector'

 

Advantages of Globalization:• esources of different countries are used for #roducing goods and ser1ices they are able to

do most efficiently.• Consumers to get much wider 1ariety of #roducts to choose from.

• Consumers get the #roduct they want at more com#etiti1e #rices.

• Com#anies are able to #rocure in#ut goods and ser1ices re5uired at most com#etiti1e

 #rices.

• Com#anies get get access to much wider mar0ets

• It #romotes understanding and goodwill among different countries.

• Ausinesses and in1estors get much wider o##ortunities for in1estment.

• =d1erse im#act of fluctuations in agricultural #roductions in one area can be reduced by

 #ooling of #roduction of different areas.Disad1antages of GlobaliBationH

• De1elo#ed countries can stifle de1elo#ment of unde1elo#ed and underde1elo#ed

countries.

• >conomic de#ression in one country can trigger ad1erse reaction across the globe.

• It can increase s#read of communicable diseases.

• Com#anies face much greater com#etition. &his can #ut smaller com#anies, at a

disad1antage as they do not ha1e resources to com#ete at global scale.

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• ther things to considerH

• J educes international #o1erty

• J Contributes to the s#read of technology

• J =dds to the #rofitability of com#anies and cor#orations

• J Auilds stronger trade ties and de#endencies between nations

• J a4or moti1ation for mo1ing o1erseas is to e#loit more la labor laws and low

en1ironmental standards

• J omogeniBes the world culture, both #ositi1ely and negati1ely

•J Destroys entire industries in de1elo#ed countries )e.g. /; automa0ers, tetilemanufacturing

Advantages of Globalisation

• Globalisation hel#s in brinign whole wolrd as one 1illage. >1ery consumer ha1e free and

fr5uent reach to the #roducts of foreign countries.

• #timum use of natural resources #ossible.

• el#full in cost reduction by eliminating cross border duties and fees

• el#ful in em#loyment generation and income generation

Disad1antages

• Globalisation is direct attac0 on local tiny and small industry.

• Global com#anies with hifi infrastructure almost ruins the local traditional small and

medium industries

• Increases cut throat com#etition.

• Globalisation increases mono#oly by countries e5ui#ed with 0nowhow and #ower.

Good sides

• GlobaliBation lets countries do what they can do best. If, for eam#le, you buy

chea# steel from another country you donKt ha1e to ma0e your own steel. Lou can focus

on com#uters or other things.

• GlobaliBation gi1es you a larger mar0et. Lou can sell more goods and ma0e more money.Lou can create more 4obs.

• Consumers also #rofit from globaliBation. roducts become chea#er and you can get

new goods more 5uic0ly.Bad sides

• GlobaliBation causes unemployment in industrialiBed countries because firms mo1e

their factories to #laces where they can get chea#er wor0ers.

• GlobaliBation may lead to more environmental #roblems. = com#any may want to

 build factories in other countries becauseenvironmental laws are not as strict as they are at

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home. oor countries in the &hird (orld may ha1e to cut down more trees so that they can sellwood to richer countries.

• GlobaliBation can lead to financial #roblems . In the !9"*s and :*s countries li0e eico,

&hailand, Indonesia or AraBil got a lot of money from investors who ho#ed they could buildu# new businesses there. &hese new com#anies often didnKt wor0, so they had to close

down and in1estors pulled out their money.

• ;ome of the #oorest countries in the world, especially in =frica, may get e1en #oorer.

&heir #o#ulation is not as educated as indeveloped countries and they donKt ha1e the newtechnology that we do.

• uman, animal and #lant diseases can spread more 5uic0ly through globaliBation.

 

any e#erts say that we need a different 0ind of globaliBation in our world today. &here must be

ways to mae sure that all countries #rofit from the good sides of globaliBation. (e should hel#

 #oorer countries by gi1ing them better education and showing them how new technology wor0s.

>1ery year, leaders of the worldKs biggest industrial countries get together to

discuss economic #roblems. &his meeting is called the G! summit. In the last few years grou#s

against globaliBation ha1e organiBed #rotest marches and demonstrations to point out that not

e1eryone is ha##y with how the worldKs economy is developing.

T"# T$% & G'$BA'I(ATI$) A*+A)TAG#,

. Globalization Increases /ree Trade

GlobaliBation has increased the free trade between countries. &he increases ca#ital li5uidity has

allowed in1estors in well de1elo#ed nations to in1est in de1elo#ing countries. uge cor#orations

from de1elo#ed nations ha1e great fleibility to o#erate in other countries.

0. Global 1ass 1edia Ties 2orld Together

&he increased flow of communication has allowed global mass media to tie the world together.

Global mass media has allowed 1ital information to be shared between cor#orations and

indi1iduals around the world. GlobaliBation has also contributed to greater s#eed and ease of

trans#orting goods and #eo#le.

3. #radicates Cultural BarriersCountries 4oining together economically through #olitics and education ha1e reduced and can

e1en eradicate cultural barriers, and increase the global 1illage effect. GlobaliBation has seen to be

the medium to s#reading of democratic ideals to well de1elo#ed nations and greater inde#endence

to de1elo#ing countries in the Global ;outh.

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&. 4eduction $f 2ar

eduction of war between well de1elo#ed nations is #robably one of the #rimary benefits of

globaliBation.

&> & 3 GFA=FIM=&IE DI;=D=E&=G>;

. *ecrease #nvironmental Integrity

GlobaliBation has the #otential to decrease the en1ironmental integrity as #olluting cor#orations

from well de1elo#ed countries can ta0e ad1antage of de1elo#ing nations wea0 regulatory rules.

0. The ,ee /or Cheap 'abor

GlobaliBations increases of nons0illed and s0illed 4obs from de1elo#ing nations to well

de1elo#ed countries as huge cor#orations see0 for chea# labor. &his economic trend can also

increase the li0elihood of economic disru#t in a single nations, which could affect all nations.

3. 'imits Cultural #5pressions

GlobaliBation im#oses threat to mass media being controlled by huge cor#orations. &his could

limit the cultural e#ressions. &his means that mass media can be used by handful cor#orations to

 #ose ris0s in the cultural heritage of both well de1elo#ed and de1elo#ing nations.

GlobaliBation is a global economical trend that is here to stay. It has ad1antages and

disad1antages, and these things will not disa##ear. eo#le 4ust need to 0now how to rea# its

 benefits and reduce its ris0s. eo#le must understand its im#act globally, and wor0 altogether to

remedy the #roblems that may arise in the future. =ll countries in the Global Eorth and Global

;outh must wor0 altogether to s#read its benefits.

Globalization

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2hat is Globalization6

  GlobaliBation means the coming together of different societies and economies 1iacross border flow of ideas, finances, ca#ital, information, technologies, goods and ser1ices. &hecross border assimilation can be social, economic, cultural, or #olitical. Aut most of the #eo#lefear cultural and social assimilation as they belie1e this would ha1e a negati1e im#act on theeisting culture of their society. GlobaliBation therefore has mostly narrowed down to economic

integration and this mainly ha##ens through three channels6 flow of finance, trade of goods andser1ices and ca#ital mo1ement.

GlobaliBation is a term that includes a wide range of social and economic 1ariations. Itencom#asses to#ics li0e the cultural changes, economics, finance trends, and global mar0ete#ansion. &here are #ositi1e and negati1e effects of globaliBation it all comes as a #ac0age.GlobaliBation hel#s in creating new mar0ets and wealth, at the same time it is res#onsible foretensi1e suffering, disorder, and unrest. &he great financial crisis that 4ust ha##ened is the biggest eam#le of how negati1e globaliBation can turn. It clearly re1eals the dangers of anunstable, deregulated, global economy. =t the same time, this ga1e rise to im#ortant globalinitiati1es, stri1ing towards betterment. GlobaliBation is a factor res#onsible for both re#ression

and the social boom.

Globalization in India

GlobaliBation has had a huge im#act on the Indian economy. GlobaliBation affected the Indianeconomy both #ositi1ely and negati1ely.

India's economy o#ened u# during the early nineties. &he #olicy measures on the domestic frontdemanded that there was a re5uirement of multinational organiBations to set u# their offices here.&he mar0et became more o#en and the economy started res#onding to the eternal )global

mar0et. &he direct im#act of globaliBation was directly seen on the GD of the country whichincreased significantly.

&he liberaliBation of the Indian economy along with globaliBation hel#ed the country to ste# u#its GD growth rate considerably. &he GD growth rate #ic0ed u# instantly from +.- #ercent in!99*9! to "".: #ercent in !99-9". ;ince then the growth rate did manage to slum# down due todrought and other factors but the country still managed to sur1i1e in the rat race and maintained aGD growth of about + to - #ercent. &oday India is regarded as being the one of the fastestde1elo#ing countries 4ust after China.

GlobaliBation has also #layed a ma4or role in generating em#loyment o##ortunities in India. =fterliberaliBation in the !99*s, the scenario of em#loyment in India has witnessed a #henomenalchange. Cities li0e Aangalore, Delhi, umbai and Chennai #ro1ide em#loyment to a chun0 of theIndian #o#ulation since it is in these cities only that most foreign com#anies ha1e set u# theiro#erations.

Impact of Globalization

It was in @uly !99!, when foreign currency reser1es had tumbled down to almost 8! billion6 inflation was at a soaring high of !"%, highest le1el of fiscal deficit, and foreign in1estorsloosing confidence in Indian >conomy. (ith all these cou#ling factors, ca#ital was on the 1erge

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of flying out of the country and we were on the brin0 of become loan defaulters. It was at thistime that with so many bottlenec0s at bay, a com#lete o1erhauling of the economic system wasre5uired. olicies and #rograms changed accordingly. &his was the best time for us to realiBe theim#ortance of globaliBation.

India welcomed globaliBation with o#en arms, the result of which can be seen clearly. India's>#ort and Im#orts ha1e grown significantly o1er the last two decades. Nuite a large number

of Indian com#anies ha1e made a re#utation for themsel1es on the global scenario. India has become a one a sto# destination for many ser1ices s#ecially related to I& and I& su##ort.

1easures of Globalization!. *evaluation: &he first initiati1e towards globaliBation had been ta0en the moment there

was an announcement of de1aluating the Indian currency by a ho#ing !:!9% against all thema4or global currencies. &his was a ma4or initiati1e in the international foreign echange arena.&he Aalance of #ayment crisis could also be resol1ed by this measure.

2. *isinvestment: &he core elements of globaliBation are #ri1atiBation and liberaliBation.

/nder the #ri1atiBation scheme, bul0 of the #ublic sector underta0ings ha1e been and are still being sold to the #ri1ate sector. &hus the conce#t of )#ublic #ri1ate #artnershi# came u#.

3. Allowing /oreign *irect Investment 7/*I8: =llowing DI inflows is a ma4or ste# of globaliBation. &he foreign in1estment regime has been 5uite trans#arent and thus the economy isgetting boosted u#. arious sectors were o#ened u# for liberaliBing the DI regime.

*isadvantages of Globalization

=long with its many benefits globaliBation also comes with some negati1e effects. ne of the

ma4or concerns of globaliBation is that it leads to une5ual distribution of income within thecountry, the second fear is that globaliBation ham#ers the domestic #olicies of the country,GlobaliBation also increases the ris0 of s#reading of communicable diseases, mono#oly can alsoset in with globaliBation and lastly outsourcing of 4obs to the de1elo#ing nations only results inthe loss of 4obs for the de1elo#ed nations.