Q.

1 Globalization (or globalisation) in its literal sense is the process or transformation of local or regional phenomena into global ones. It can be described as a process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces. Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Tom G. Palmer of Cato Institute defines "globalization" as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result." ------------------------Effects of globalization: Globalization has various aspects which affect the world in several different ways such as: Industrial Financial Economic Political Informational Language Competition Cultural EcologicalSocial (International cultural exchange) TechnicalLegal/EthicalQ.2 Main Drivers of Globalisation

Influential commentator Hamish McRae has stated that businesses are the main driver of globalisation. Why is this?

Multinationals (businesses that operate in more than one country) want to increase sales, profits and shareholder value. Globalisation provides that opportunity The barriers to international business are lower and falling it is much easier to expand into new territories, particularly if the business is providing a service (e.g. selling software) Governments want to encourage domestic businesses to expand overseas (it results in a flow of profits back into the domestic economy) so there is lots of help available for businesses looking to expand overseas

Businesses themselves though are not the only drivers of globalisation. Consider factors such as:

Picking up on two examples from the drivers above: Lower transport costs

Costs of ocean shipping have come down, due to containerisation, bulk shipping, and other efficiencies This helps to bring prices in the country of manufacture closer to prices in the export market

Digital communication

The Internet has dramatically lowered the cost of transmitting and communicating information

Expressed in 2005 US dollars, the charge for a three-minute New York-London call has dwindled from $80 in 1950 to $0.23 in 2007 Digital communication has stimulated global trade in knowledge products e.g. software, outsourced services & media content

There are several alternative approaches for a business looking to expand globally many choose to follow one or more of the following:

Establish production sites overseas Licence technology & other intellectual property Joint ventures Franchising Offshoring / outsourcing

Q3. Exporting Exporting is the process of selling of goods and services produced in one country to other countries.[4] There are two types of exporting: direct and indirect. Direct exports Direct exports represent the most basic mode of exporting, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism.

Types Sales representatives Sales representatives represent foreign suppliers/manufacturers in their local markets for an established commission on sales. Provide support services to a manufacturer regarding local advertising, local sales presentations, customs clearance formalities, legal requirements. Manufacturers of highly technical services or products such as production machinery, benefit the most form sales representation. Importing distributors Importing distributors purchase product in their own right and resell it in their local markets to wholesalers, retailers, or both. Importing distributors are a good market entry strategy for products that are carried in inventory, such as toys, appliances, prepared food.[5] Advantages

Control over selection of foreign markets and choice of foreign representative companies Good information feedback from target market Better protection of trademarks, patents, goodwill, and other intangible property Potentially greater sales than with indirect exporting.[6]

Disadvantages

Higher start-up costs and higher risks as opposed to indirect exporting Greater information requirements Longer time-to-market as opposed to indirect exporting.[7]

Indirect exports Indirect exports is the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market.

Types Export trading companies (ETCs) These provide support services of the entire export process for one or more suppliers. Attractive to suppliers that are not familiar with exporting as ETCs usually perform all the necessary work: locate overseas trading partners, present the product, quote on specific enquiries, etc. Export management companies (EMCs) These are similar to ETCs in the way that they usually export for producers. Unlike ETCs, they rarely take on export credit risks and carry one type of product, not representing competing ones. Usually, EMCs trade on behalf of their suppliers as their export departments.[8] Export merchants Export merchants are wholesale companies that buy unpackaged products from suppliers/manufacturers for resale overseas under their own brand names. The advantage of export merchants is promotion. One of the disadvantages for using export merchants result in presence of identical products under different brand names and pricing on the market, meaning that export merchants activities may hinder manufacturers exporting efforts. Confirming houses These are intermediate sellers that work for foreign buyers. They receive the product requirements from their clients, negotiate purchases, make delivery, and pay the suppliers/manufacturers. An opportunity here arises in the fact that if the client likes the product it may become a trade representative. A potential disadvantage includes suppliers unawareness and lack of control over what a confirming house does with their product. Nonconforming purchasing agents

These are similar to confirming houses with the exception that they do not pay the suppliers directly payments take place between a supplier/manufacturer and a foreign buyer.[9] Advantages

Fast market access Concentration of resources for production Little or no financial commitment. The export partner usually covers most expenses associated with international sales Low risk exists for those companies who consider their domestic market to be more important and for those companies that are still developing their R&D, marketing, and sales strategies. The management team is not distracted No direct handle of export processes.[10]

Disadvantages

Higher risk than with direct exporting Little or no control over distribution, sales, marketing, etc. as opposed to direct exporting Inability to learn how to operate overseas Wrong choice of market and distributor may lead to inadequate market feedback affecting the international success of the company Potentially lower sales as compared to direct exporting, due to wrong choice of market and distributors by export partners.[11]

Those companies that seriously consider international markets as a crucial part of their success would likely consider direct exporting as the market entry tool. Indirect exporting is preferred by companies who would want to avoid financial risk as a threat to their other goals. Licensing An international licensing agreement allows foreign firms, either exclusively or non-exclusively to manufacture a proprietors product for a fixed term in a specific market.

Summarizing, in this foreign market entry mode, a licensor in the home country makes limited rights or resources available to the licensee in the host country. The rights or resources may include patents, trademarks, managerial skills, technology, and others that can make it possible for the licensee to manufacture and sell in the host country a similar product to the one the licensor has already been producing and selling in the home country without requiring the licensor to open a new operation overseas. The licensor earnings usually take forms of one time payments, technical fees and royalty payments usually calculated as a percentage of sales. As in this mode of entry the transference of knowledge between the parental company and the licensee is strongly present, the decision of making an international license agreement depend on the respect the host government show for intellectual property and on the ability of the licensor to choose the right partners and avoid them to compete in each other market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee. Following are the main advantages and reasons to use an international licensing for expanding internationally:

Obtain extra income for technical know-how and services Reach new markets not accessible by export from existing facilities Quickly expand without much risk and large capital investment Pave the way for future investments in the market Retain established markets closed by trade restrictions Political risk is minimized as the licensee is usually 100% locally owned Is highly attractive for companies that are new in international business.

On the other hand, international licensing is a foreign market entry mode that presents some disadvantages and reasons why companies should not use it as:

Lower income than in other entry modes

Loss of control of the licensee manufacture and marketing operations and practices dealing to loss of quality Risk of having the trademark and reputation ruined by a incompetent partner The foreign partner can also become a competitor by selling its production in places where the parental company is already in.

Franchising The franchising system can be defined as: A system in which semiindependent business owners (franchisees) pay fees and royalties to a parent company (franchiser) in return for the right to become identified with its trademark, to sell its products or services, and often to use its business format and system. [12] Compared to licensing, franchising agreements tends to be longer and the franchisor offers a broader package of rights and resources which usually includes: equipments, managerial systems, operation manual, initial trainings, site approval and all the support necessary for the franchisee to run its business in the same way it is done by the franchisor. In addition to that, while a licensing agreement involves things such as intellectual property, trade secrets and others while in franchising it is limited to trademarks and operating know-how of the business.[13] Advantages of the international franchising mode:

Low political risk Low cost Allows simultaneous expansion into different regions of the world Well selected partners bring financial investment as well as managerial capabilities to the operation.

Disadvantages of the international franchising mode:

Franchisees may turn into future competitors

Demand of franchisees may be scarce when starting to franchise a company, which can lead to making agreements with the wrong candidates A wrong franchisee may ruin the companys name and reputation in the market Comparing to other modes such as exporting and even licensing, international franchising requires a greater financial investment to attract prospects and support and manage franchisees.[14]

The key success for franchising is to avoid sharing the strategic activity with any franchisee especially if that activity is considered importance to the company. Sharing those strategic activity may increase the potential of the franchisee to be our future competitor due to the knowledge and strategic spill over. Turnkey projects A turnkey project refers to a project in which clients pay contractors to design and construct new facilities and train personnel. A turnkey project is way for a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies that specialize in complex production technologies normally use turnkey projects as an entry strategy.[15] One of the major advantages of turnkey projects is the possibility for a company to establish a plant and earn profits in a foreign country especially in which foreign direct investment opportunities are limited and lack of expertise in a specific area exists. Potential disadvantages of a turnkey project for a company include risk of revealing companies secrets to rivals, and takeover of their plant by the host country. By entering a market with a turnkey project proves that a company has no long-term interest in the country which can become a disadvantage if the country proves to be the main market for the output of the exported process.[16]

Wholly owned subsidiaries (WOS) A wholly owned subsidiary includes two types of strategies: Greenfield investment and Acquisitions. Greenfield investment and acquisition include both advantages and disadvantages. To decide which entry modes to use is depending on situations. Greenfield investment is the establishment of a new wholly owned subsidiary. It is often complex and potentially costly, but it is able to full control to the firm and has the most potential to provide above average return.[17] Wholly owned subsidiaries and expatriate staff are preferred in service industries where close contact with end customers and high levels of professional skills, specialized know how, and customization are required.[18] Greenfield investment is more likely preferred where physical capital intensive plants are planned.[19] This strategy is attractive if there are no competitors to buy or the transfer competitive advantages that consists of embedded competencies, skills, routines, and culture.[20] Greenfield investment is high risk due to the costs of establishing a new business in a new country.[21] A firm may need to acquire knowledge and expertise of the existing market by third parties, such consultant, competitors, or business partners. This entry strategy takes much time due to the need of establishing new operations, distribution networks, and the necessity to learn and implement appropriate marketing strategies to compete with rivals in a new market.[22] Acquisition has become a popular mode of entering foreign markets mainly due to its quick access[23] Acquisition strategy offers the fastest, and the largest, initial international expansion of any of the alternative. Acquisition has been increasing because it is a way to achieve greater market power.The market share usually is affected by market power. Therefore, many multinational corporations apply acquisitions to achieve their greater market power require buying a competitor, a supplier, a distributor, or a business in highly related industry to allow exercise of a core competency and capture competitive advantage in the market.[24]

Acquisition is lower risk than Greenfield investment because of the outcomes of an acquisition can be estimated more easily and accurately.[25] In overall, acquisition is attractive if there are well established firms already in operations or competitors want to enter the region. On the other hand, there are many disadvantages and problems in achieving acquisition success.

Integrating two organizations can be quite difficult due to different organization cultures, control system, and relationships.[26] Integration is a complex issue, but it is one of the most important things for organizations. By applying acquisitions, some companies significantly increased their levels of debt which can have negative effects on the firms because high debt may cause bankruptcy.[27] Too much diversification may cause problems.[28] Even when a firm is not too over diversified, a high level of diversification can have a negative effect on the firm in the long term performance due to a lack of management of diversification.

Joint venture There are five common objectives in a joint venture: market entry, risk/reward sharing, technology sharing and joint product development, and conforming to government regulations. Other benefits include political connections and distribution channel access that may depend on relationships.[29] Such alliances often are favourable when:

The partners' strategic goals converge while their competitive goals diverge The partners' size, market power, and resources are small compared to the Industry leaders Partners are able to learn from one another while limiting access to their own proprietary skills

The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm

capabilities and resources, and government intentions. Potential problems include:[30]

Conflict over asymmetric new investments Mistrust over proprietary knowledge Performance ambiguity - how to split the pie Lack of parent firm support Cultural clashes If, how, and when to terminate the relationship

Joint ventures have conflicting pressures to cooperate and compete:[31]

Strategic imperative: the partners want to maximize the advantage gained for the joint venture, but they also want to maximize their own competitive position. The joint venture attempts to develop shared resources, but each firm wants to develop and protect its own proprietary resources. The joint venture is controlled through negotiations and coordination processes, while each firm would like to have hierarchical control.

Strategic alliance A strategic alliance is a term used to describe a variety of cooperative agreements between different firms, such as shared research, formal joint ventures, or minority equity participation.[32] The modern form of strategic alliances is becoming increasingly popular and has three distinguishing characteristics:[33] 1. They are frequently between firms in industrialized nations. 2. The focus is often on creating new products and/or technologies rather than distributing existing ones. 3. They are often only created for short term durations. Advantages Some advantages of a strategic alliance include:[34] Technology exchange

This is a major objective for many strategic alliances. The reason for this is that many breakthroughs and major technological innovations are based on interdisciplinary and/or inter-industrial advances. Because of this, it is increasingly difficult for a single firm to possess the necessary resources or capabilities to conduct their own effective R&D efforts. This is also perpetuated by shorter product life cycles and the need for many companies to stay competitive through innovation. Some industries that have become centers for extensive cooperative agreements are:

Telecommunications Electronics Pharmaceuticals Information technology Specialty chemicals

Global competition There is a growing perception that global battles between corporations be fought between teams of players aligned in strategic partnerships.[35] Strategic alliances will become key tools for companies if they want to remain competitive in this globalized environment, particularly in industries that have dominant leaders, such as cell phone manufactures, where smaller companies need to ally in order to remain competitive. Industry convergence As industries converge and the traditional lines between different industrial sectors blur, strategic alliances are sometimes the only way to develop the complex skills necessary in the time frame required. Alliances become a way of shaping competition by decreasing competitive intensity, excluding potential entrants, and isolating players, and building complex value chains that can act as barriers.[36] Economies of scale and reduction of risk Pooling resources can contribute greatly to economies of scale, and smaller companies especially can benefit greatly from

strategic alliances in terms of cost reduction because of increased economies of scale. In terms on risk reduction, in strategic alliances no one firm bears the full risk, and cost of, a joint activity. This is extremely advantageous to businesses involved in high risk / cost activities such as R&D. This is also advantageous to smaller organizations which are more affected by risky activities. Alliance as an alternative to merger Some industry sectors have constraints to cross-border mergers and acquisitions, strategic alliances prove to be an excellent alternative to bypass these constraints. Alliances often lead to full-scale integration if restrictions are lifted by one or both countries. Risks of competitive collaboration Some strategic alliances involve firms that are in fierce competition outside the specific scope of the alliance. This creates the risk that one or both partners will try to use the alliance to create an advantage over the other. The benefits of this alliance may cause unbalance between the parties, there are several factors that may cause this asymmetry:[37]

The partnership may be forged to exchange resources and capabilities such as technology. This may cause one partner to obtain the desired technology and abandon the other partner, effectively appropriating all the benefits of the alliance. Using investment initiative to erode the other partners competitive position. This is a situation where one partner makes and keeps control of critical resources. This creates the threat that the stronger partner may strip the other of the necessary infrastructure. Strengths gained by learning from one company can be used against the other. As companies learn from the other, usually by task sharing, their capabilities become strengthened, sometimes this strength exceeds the scope of the venture and a company

can use it to gain a competitive advantage against the company they may be working with.

Firms may use alliances to acquire its partner. One firm may target a firm and ally with them to use the knowledge gained and trust built in the alliance to take over the other.

Q.4 Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO. The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. As huge amounts of foreign direct investments were coming to the Indian Industry, they boosted the Indian economy quite significantly. The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced. The various negative Effects of Globalization on Indian Industry are that it increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced the amount of profit of the Indian

Industry companies. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries. The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries. The effects of globalization on Indian Industry have proved to be positive as well as negative. The government of India must try to make such economic policies with regard to Indian Industry's Globalization that are beneficial and not harmful.

IMPACT OF GLOBALIZATION ON DOMESTIC INSTITUTIONS No industry has escaped the impact of globalization. Some have been hit hard, for example; automobiles, chemicals, electronics, steel, textiles, and tires. Others, such as food and beverages, paper, pharmaceuticals, and industrial machinery and equipment, have fared better. An ongoing restructuring was put in motion as a result of the globalization of markets. Downsizing, consolidation, and reconfiguration are common terms used to describe the current state of affairs in all industries. At the firm level, managers have come to recognize that constant productivity improvement is the only durable solution to remaining economically viable. Those companies that operate in global industries find that they must achieve "world class" status. This implies that they must benchmark against the best of their competition, wherever they are located. Benchmarking refers to the process of identifying, learning, and

implementing the best practices of world class organizations.2" Practices in various areas of company activity are targeted: order filling, customer service, manufacturing processes, and human resource management. Managers study the best practices of leading companies, not necessarily those in the same line of business, and then try to implement them in their own organizations. There are now consortia of firms who agree to facilitate benchmarking studies at each other's facilities. The new realities of the global marketplace have prompted business organizations to be constantly in search of enhanced productivity and new sources of competitive advantage.

Q.5 IMPACT OF GLOBALIZATION ON CULTURE: The continuing world-wide growth of access to internet is being mirrored by an equally discernible rise in its use by ethnic ideological and national groups anxious to assert their culture identity (Obiora; 2002). This is most apparent in the information obtain some of which reflect interest and goals. With trade agreement and liberalization orf telecommunications, Corbit (199), notes that corporate culture is said to rule the nation Jean (2002) observes that globalization has made it possible for the whole world to be

wired and plugged into T.V programme, movies, news, music, life style and entertainment of the advance countries. Satellite, cables, phones, walkmans, V.C.Ds, D.V.Ds and retails grants as well as wonders of entertainment technology are creating the mass marketing of culture. The impact of globalization on the culture is immense and diverse. It has effected the cultural aspect of people in different ways. For instance, the loud echoing advertisement rhythms of the famous Coca-Cola drinks can be heard across the boundaries in towns, cities and even in remote rural areas where drinking water is hard to get. This is why Duru-Ford (2002) observe that people had to change their living ways due to influence of globalization. Since globalization involves the opening up the economics and knowledge freely and widely to the global market and its forces, Friday (2002) contends that it is required that whatever the nature of their economics, knowledge their level of the development and whatever their location in the global economy, all countries must pursue a common set of economic policies. Of particular importance, they must permit free and discriminate operation of transnational corporation in their economies, open their economies freely and indiscriminately to import and concentrate on exporting what they are supposed to be good at; reduce the role of government in the economy to that of supporting the market and private enterprises; and leave the determination of prices of goods, currencies labour, as well as the

allocation of the resources to the operation of the market (Awake 2002). It has been observed that the aspects of long process of globalization has been implemented in Nigeria. This is because 1987, Ibrahim Babangida, the then President of Nigeria introduce structural adjustment programme such as deregulated foreign investment, import liberalization, deregulated banking system and so on. The result have been to further undermine the internal and national productive capacity, social security and democratic integrity of there developing countries (Friday 2002). Tuhus-Dubrow (2002) has observe that a language is considered endangered when it is not longer spoken by children, moribund by only handful of elderly speaker and left to extinct when it is no longer spoken. The number of language endangered vary but the average estimates from studies, according to whalen (2002) are alarming with half of the world language struggling to survive. It has been observed that many of Nigerian languages are endangered. (Ajayi, 2001). It is opinion of walleh (2002) that a language should be preserved. This is because language recognizes peoples right to determination of their own fate. Any culture can be expressed in any language in some ways, but the nature language is most effective. In Nigeria, the indigenous languages are rendered impotent because, English Language is the official language of the country. Globalization has made English language a predator language. This informs James (1997) to

state that English language is a killer language. English language has run rampant all over Nigeria. People want to speak English language because it is the language of advertising, blockbuster, movies and pop music, as well as vital tool of success. English language has become certainly the most successful lingua franca we have ever seen. Wade (1997) maintains that we will continue to use languages of our but we all know that these languages are giving way to English language. Global communication according to Oni (2001) is observed to the flattening the cultural terrain in the direction of the dominance of the modes and material practices of the global economic leaders, most particularly in the United States of America (USA). The ownership of the strategic components of the global communication technologys i.e. Microsoft, is seen as determining element in this flattening of terrain. Today, the world is moving towards the extinction of a rich and varied cultural and symbolic life and emerging in the global language. Cyrstal (1997) notes that English Language, that is emerging as global language, is no longer under the control of its original owners. On the otherhand, the Nigerian indigenous languages are facing serious danger of extinction. Nigeria much has become characterized with themese such as AIDS, Orphas, land mines, war and drought. Furthermore, Nigeria music has been neutralized with the western beats of Michael Jackson, Lionel Richie, Craig-

David etc. Many Nigerian Youth now prefer western hair style, shoes and dressing. Yakubu (1999) discovers that young people of the Third World countries are the largest consumers of global culture. With MTV, Eurostar global entertainment is signalling absolute dominance of the music of western culture. Probably that is why Jean 2002 maintains that TV does not offer only entertainment it embodies the sheer power and influence of the global corporate culture. Television has become the agent of the new global corporate vision. All over the world, people of all ages are exposed to the same music, the same sporting events, the same news, soap-opera and the same glamorous life style. `It is observed that the culture of U.S. is available every where (PIPA; 1999). Satellite T.V. has made T.V. programmes to be available for 24 hours. Yakubu (1999) notes that about 75% of the world population have access to daily T.V. reception. Most of the T.V. screens are dominated by U.S. films, music and life style. Children no longer sit in the evening for tales by moonlight that promote the values of respect, integrity, peace, love and unity. Even, it has been neglected in the rural areas where this sort of environment would fit best. The struggle now is for survival; how to get a bond of meal to fill family. Children now involve themselves in crime such as robbery, thuggery, violence and female prostitution. Fridah (2002) notes that in the olden days, most communities in Africa

had a strong policy of food security. Distant family compound. Today, all these have vanished and people have been forced into a situation where they are living from hand to mouth. Globalization has made the working class run into the habit of borrowing teir salaries even before they receive them. According to Oni (2001) bribery and corruption are encouraged so as to make ends meet. Awareness of globalization is on the increase that no one wants to be left behind. Women, in Nigeria have realized this probably, that is why Obwra (2002) maintains that women economic activities have been highly affected y globalization. Women are now forced to enter into those economic exclusively preserved for men. Globalization has exposed the wome into crime and other illegal economic activities. Globalization has resulted in the introduction of policies armed at eliminating all obstacles of the free exercise of economic activity across boundaries including trade liberalization, te deregulation of production, the labour market and the market of goods and services and the implementation of regional and international agreements. Nigeria, for instance, has opened her border to goods and services of ECOWAS nations. Furthermore, Nigerias border is opened to any information or data coming from any country of the world. Before globalization, Nigerias economy like other developing economies was heavily regulated by the state. Under the regulated economy

restrictive business practices on import and export where in place. These include use of import licence, imposition of tariffs quota, control of foreign exchange and some times outright bar on importation. During this period, self-reliance was the slogan. However, this has now been replaced by deregulation, economic liberalization and privatization of the national economic activities. The hope is that this new approach will accelerate rapid economic growth and development. Nigeria has now become a big importer of rice to the detriment of locally produced rice. (Crystal 1997) most Nigerian prefer American Rice. This has forced the production of local rice to be reduced. However, Nigeria has become a big import of food. With reduction of subsidies on food in the developed countries, there will be price increase in their food export. This may justify Raghavan (1999) view that poor countries that rely on food import may face rising import bills, especially when many of the Third world countries suffer from lack of foreign exchange problems. As a consequence the food security of farmers of the Third World countries is threatened. The situation according to Raghavan (1997) is made worse by the fact that food decline. According to him between 1987 and 1997 food and shipmatts were halved from 12.7 million tons to 5.43 million tons. The impact of increased reliance on food imports undermines a nations food security and poverty hunger and starvation can only worsen for majority of

small farmers. After many years of globalization indicate will destroy farmers livelihoods displace communities and create rural unemployment otherwise because global trade is also to do with peoples livelihood and their most basic social and economic rights. Trade is part of daily life of millions of Nigerias poor people. Trade is a crucial determinant of the welfare of African and in turn affect their culture. Corbitt (2002) observes that when a people social and economic patterns are affected, the culture is over all affected too. Globalization that is built on the unacceptable levels of inequities to vulnerable communities ad groups, or courses global environmental damage and disregards our obligations to future generations is not conclusive to even and sustainable development. Hitherto, the Nigerian culture expects man to provide for the family but this has changed. It is men and women both leave home in search of the available labour it has become a common practice, especially where there are massive retrenchment one will find men at home while the woman goes to work. Hence, it has effect on the household responsibilities, where one finds change of roles when a man has to wash, cook and even look after the children. Many children have dropped out of schools because their families cannot afford to pay their school fees (Obiora 2002). This situation is reducing the little opportunities they have. There is a limit to ones capacity to enjoy ones right, if one has not gone to school. This means that one may not get a job and therefore ones rights are affected.

Irele (2001) notes that there is need to promote, protect, preserve and modernize Black and African culture in general, in order to empower them to complete favourably in the emerging global world dominated by western cultural values and standards. One way of doing that is the need to aggressively collect African oral traditions especially poetry, and preserve them with audio-visual facilities in order to conceptualize. The mechanics and technique of African performance arts as well as enhance their utilization for research and development purposes. Ajayi (2001) remarks that globalization is about competition and struggle for dominance which encourages more than anything else, the continuation and expansion of western imperialism in the new millenium. To make globalization meaningful to Nigerian culture. This is because the cultural order of the day world wise to days is the issue of who you are in terms of knowledge.

Q.7 Impact on India: India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations. The new policy regime radically pushed forward in favour of amore open and market oriented economy.

Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included scrapping of the industrial licensing regime, reduction in the number of areas reserved for the public sector, amendment of the monopolies and the restrictive trade practices act, start of the privatisation programme, reduction in tariff rates and change over to market determined exchange rates. Over the years there has been a steady liberalisation of the current account transactions, more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors. The Indian tariff rates reduced sharply over the decade from a weighted average of 72.5% in 1991-92 to 24.6 in 1996-97.Though tariff rates went up slowly in the late nineties it touched 35.1% in 2001-02. India is committed to reduced tariff rates. Peak tariff rates are to be reduced to be reduced to the minimum with a peak rate of 20%, in another 2 years most non-tariff barriers have been dismantled by march 2002, including almost all quantitative restrictions. India is Global: The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up GDP growth rates, which picked up from 5.6% in 1990-91 to a peak level of 77.8% in 1996-97. Growth rates have slowed down since the country has still bee able to achieve 5-6% growth rate in three of the last six years. Though growth rates has slumped to the lowest level 4.3% in 2002-03 mainly because of the worst droughts in two decades the growth rates are expected to go up close to 70% in 2003-04. A Global comparison shows that India is now the fastest growing just after China. This is major improvement given that India is growth rate in the 1970's was very low at 3% and GDP growth in countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India. Though India's average annual growth rate almost doubled in the eighties to 5.9% it was still lower than the growth rate in China,

Korea and Indonesia. The pick up in GDP growth has helped improve India's global position. Consequently India's position in the global economy has improved from the 8th position in 1991 to 4th place in 2001. When GDP is calculated on a purchasing power parity basis. Globalisation and Poverty: Globalisation in the form of increased integration though trade and investment is an important reason why much progress has been made in reducing poverty and global inequality over recent decades. But it is not the only reason for this often unrecognised progress, good national polices , sound institutions and domestic political stability also matter. Despite this progress, poverty remains one of the most serious international challenges we face up to 1.2 billion of the developing world 4.8 billion people still live in extreme poverty. But the proportion of the world population living in poverty has been steadily declining and since 1980 the absolute number of poor people has stopped rising and appears to have fallen in recent years despite strong population growth in poor countries. If the proportion living in poverty had not fallen since 1987 alone a further 215million people would be living in extreme poverty today. India has to concentrate on five important areas or things to follow to achieve this goal. The areas like technological entrepreneurship, new business openings for small and medium enterprises, importance of quality management, new prospects in rural areas and privatisation of financial institutions. The manufacturing of technology and management of technology are two different significant areas in the country. There will be new prospects in rural India. The growth of Indian economy very much depends upon rural participation in the global race. After implementing the new economic policy the role of villages got its own significance because of its unique outlook and branding methods. For example food processing and packaging are the one of the area where new entrepreneurs can enter into a big way. It may be

organised in a collective way with the help of co-operatives to meet the global demand. Understanding the current status of globalisation is necessary for setting course for future. For all nations to reap the full benefits of globalisation it is essential to create a level playing field. President Bush's recent proposal to eliminate all tariffs on all manufactured goods by 2015 will do it. In fact it may exacerbate the prevalent inequalities. According to this proposal, tariffs of 5% or less on all manufactured goods will be eliminated by 2005 and higher than 5% will be lowered to 8%. Starting 2010 the 8% tariffs will be lowered each year until they are eliminated by 2015. GDP Growth rate: The Indian economy is passing through a difficult phase caused by several unfavourable domestic and external developments; Domestic output and Demand conditions were adversely affected by poor performance in agriculture in the past two years. The global economy experienced an overall deceleration and recorded an output growth of 2.4% during the past year growth in real GDP in 2001-02 was 5.4% as per the Economic Survey in 2000-01. The performance in the first quarter of the financial year is5.8% and second quarter is 6.1%. Export and Import: India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and nonbasmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports.