Next, due to advancements in modes of transportation, it has now become very easy to travel locally and overseas. And, due to increase in tourism, most of the nations have become victims of epidemic diseases, which were only observed in impoverished parts of the world.
On the other hand, globalization has resulted in manifold positives, first out of which is economic growth of nations. To expand their business, Multinational Companies MNCs set up their offices in different countries, which increases the employment and development rate of the nations, in which MNCs set up their business. Secondly, globalization has transformed the entire world into a global village.
Earlier, the thought of traveling from one city to another used to traumatize the people, but now a person can complete a journey of thousand miles in just a few hours. After analyzing the benefits as well as the drawbacks of globalization, it can be concluded that although globalization has resulted in some disadvantages, yet its benefits can never be ignored.
All these have resulted in open access to new markets and new technology for the country. Another characteristic of globalisation is the control of economic activities by domestic market and international market. It also established coordination among the national economy and world economy.
One of the important characteristics of globalisation is free trade between counties. It also means absence of excessive governmental control over trade. Under globalisation, localities being connected with the world by breaking national boundaries; forging of links between one society and another and between one country and another through international transmission of knowledge, technology, ideas, information, literature and culture.
It results breaking of national barriers and creation of inter-connectedness. Globalisation is a composite process through which integration of nation-states across the world can be made by common economic, commercial, political, cultural and technological ties. It also leads to creation of a new world order with no national boundaries. Globalisation is a multi-dimensional process. Economically, it simply means opening up of national market, free trade and commerce among nations, free flow of labour, capital and technology, and integration of national economies with the world economy.
Politically, it means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of the private sector culturally it means exchange of cultural values between societies and between nations; and ideologically, it means the promotion and spread of liberalism and capitalism. Globalisation originates from developed countries and MNCs based in those countries.
Technologies, capital, products and services are allowed to enter from developed countries to developing countries. It is the developing countries which needs to be adapted with the changing situations and to accept those new ideas for attaining higher level of socio-economic development. The above characteristics of globalisation simply suggests that there is a great need for global integration under the present global economic scenario. In view of the current global recession and financial crisis, there is a paramount importance of global integration.
Following are some of the important advantages of globalisation for a developing country like India: Prolonged protective scenario in the absence of globalisation makes the production system careless about cost effectiveness which can be attained by following the policy of globalisation.
Cost effectiveness and price reduction of manufactured commodities will improve the terms of trade in favour of agriculture. This would result trickle-down effect to reduce the proportion of population living below the poverty line. Globalisation also has many disadvantages also. Following are some of these disadvantages: As with the WTO trading provisions, agricultural commodities market of poor and developing countries will be flooded farm goods from countries at a rate much lower than that indigenous farm products leading to a death-blow to many farmers.
Thus, the human and social costs of globalisation usually multiply to such an extent that may tests the social fabric of the democracies in an unprecedented manner. While introducing economic reforms, Indian economy has been proceeding in the path of globalisation in a serious manner. Following are some of the measures taken by the Government of India towards globalisation: Automatic approval will also given for all other royalty payments to those projects which can generate internally the foreign exchange so required.
Moreover, quantitative restrictions were replaced by price-based system. Other measures introduced in this direction include setting up of special economic zones SEZs , full filling WTO norms and aligning EXIM procedures, removal of disincentives, export promotion through import entitlement. Following the strategy of export-led growth during the last 20 years, Indian economy experiences lot of changes in its condition. As a result, Indian exports as a percentage of GDP have increased from 5. Simultaneously, Indian imports have also increased considerably from 8.
It is also important to look at another major benefit of globalisation, i. The volume of software and ITES exports from India grew from Rs 28, crore in to Rs 58, crore in and then to Rs 1,03, crore in showing a growth of 32 per cent over the previous year. The software export sector has also been able to recruit 3. Thus as a result of globalisation India has taken a strategy to reach international standards in productivity and thereby competing in the global market effectively with reputation.
Moreover, the structure of Indian economy has also undergone considerable change in the last decade. These include increasing importance of external trade and of external capital flows. The services sector has become a major part of the economy with GDP share of over 50 per cent and the country becoming an important hub for exporting IT services. The share of merchandise trade to GDP increased considerable to over 35 per cent in from If the trade in services is included the trade ratio is 47 per cent of GDP for Again, the rapid, growth of Indian economy during the period to also made India an attractive destination for foreign capital inflows and net capital inflows that were 1.
Foreign portfolio investment also added buoyancy to the Indian capital markets and Indian corporate began aggressive acquisition spree overseas, which was reflected in high volume of outbound direct investment flows.
Another important dimension of globalisation has been the high degree of external dependence on imported energy sources, especially crude oil with the share of imported crude in domestic consumption exceeding 75 per cent. Therefore, a major change in international crude prices is bound to impact the Indian economy extensively as happened in early and in early Thus the present trend in globalization in Indian economy has to he analysed seriously from all angles for determining its future policy directions in a most rational manner.
The adoption of the policy of globalisation in India has resulted initially the following mixed impacts on its economy: As a result of globalisation, Indian companies started to face growing competition from free flow of products produced by multi-national companies MNCs.
Unequal competition between the domestic companies and mighty MNCs has resulted closure of weak industrial units both under large, medium and small scale categories. This would, however, require the exports to grow at the rate of 18 per cent per annum.
As a result of globalisation India has been able to gain in respect of trade in services, especially in respect of Information Technology industry. Indian software professionals have created a brand image in the global market. Export-import among countries involves a massive amount of money.
For example, China has become a massive manufacturing hub. The electronic goods manufactured in China are sold across almost every country of the world. Multinational-companies have economic interest across several nations.
They have big market and make huge investment in foreign countries. A decline in demand in one country affects the overall performance of these companies. Due to Globalization, there has been an increase in cross-border Merger and acquisitions. India has emerged as a major player of service and Information Technology IT industry.
Many BPO services are provided from remote places. Their services are hired by companies around the world. Due to Globalization, the world is getting smaller every day.
As a result of globalization, we see cultural exchange among communities. People get the opportunity to exchange ideas and adopt better means of living.
For example, the western culture is adopting traditional meditation practices of the east.
Globalization is a process and this process makes developments in these countries. First of all is the independence of each of developing countries. The development in industry, economy, culture and polity gives solutions to social problems.
Essay globalization 1. GLOBAL INTEGRATION: ADVANTAGES AND DISADVANTAGES Globalization is the process by which different societies, cultures, and regionaleconomies integrate through a worldwide network of political ideas throughtransportation, communication, and trade.
ADVERTISEMENTS: In this essay we will discuss about Globalisation. After reading this essay you will learn about: 1. Meaning of Globalisation 2. Characteristics of Globalisation 3. Advantages 4. Disadvantages 5. Globalisation of Indian Economy 6. Impacts. Contents: Essay on the Meaning of Globalisation Essay on the Characteristics of Globalisation Essay on the Advantages of Globalisation . - Globalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. - Introduction Throughout the essay, I will be evaluating how globalisation.
Short Essay on Globalization. Category: Essays, Paragraphs and Articles On September 10, By Team Work. Globalization. Globalization is the process of integration and exchange of economic, social, and cultural aspect of people beyond national boundaries. Write about the following topic: Even though globalization affects the world’s economies in a very positive way, its negative side should not be forgotten. Discuss. Check ou the model answer for globalization essay.