How real is Globalisation

Sivanarayana J

Definition
Globalisation is the system of interaction among the countries of the world in order to develop the global economy. Globalization involves technological, economic, political and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.

Globalisation and its impacts

Agricultural Sector Industrial Sector Financial Sector IT &Communication International Trade Financial Institution

Contd..
Service Sector Outsourcing Civil Society

Agricultural Sector
Raising living standards Assuring food security Contributing to national economic growth

Industrial Sector
Advanced technologies. Foreign companies set up industries in India Increased employment

Financial Sector
Growth financial service such as banking, insurance and real estate etc., Flow of FDI

 Higher rate of interest may not attract required amount of investment Any investor wants the expected rate of return from investment higher than the interest rate Interest policy might change direction of capital flows from high interest regions to lower ones

International Trade
Number of countries where the products can be sold or purchased has increased dramatically Promotes economies of scale

IT &Communication
No of mobile, internet access has increased Improved and accessible communication technology Online purchasing Online education

International Institution
Strengthened the power and influence of international institutions such as World trade Organizations(WTO) International Monetary Fund(IMF) World Bank(WB)

Service Sector
Service sector has grown enormously from 29% in 1960-61 to 64% in 2011-12 Market Share of China is 53.7% in 2011-12

Outsourcing
Countries like India and China are tremendously benefitted . Global companies in the US and Europe outsourcing their works to India and China to take advantage of cheap labour and highly skilled workers.

Civil Society
Civil Society refers to Non Governmental Organizations (NGO) Globalization has led to greater influence of NGOs in areas like human rights, environment, children and workers.

 Save tiger initiative, started in 2006 Organized in collaboration with Global Tiger Forum(GTF)

Poverty
Poverty level in India has decreased from 37.2% in 2004-05 to 23% in 2011-12 Government of India fixed Rs 20 per day as the index.

Advantages
International markets for companies and for consumers there is a wider range of products to choose from Increase in flow of investments Greater and faster flow of information Greater cultural interaction Technological development

Disadvantages
Loss of jobs Great threat of spread of communicable diseases

Conclusion
Globalisation has helped India to grow in many spheres but there are some problem areas which need to be answered. Government of India should formulate new policies to utilise the benefits of globalisation

Thank you