We have everything by globalization,

we have nothing by globalization.

Globalization describes a process of economies, societies, and cultures have become integrated through a global network of communication. Globalization help to the operating and planning to expand business throughout the world. Erasing the differences between domestic market and foreign market. Establishing manufacturing and distribution facilities done by the world over.

Globalization & Liberalization policy was introduced by Dr. MANMOHAN SINGH, in the year 1991, who was the finance minister of the country. The purpose behind the policy is to improve economic condition as well as standards of living of people in the country. Mr. ADITYA BIRLA was the first industrialist who had initiated the policy at the Indian side by setting up company in THAILAND & MALESIYA.

Today, it has become one of the fastest growing economies in the world with an average growth rate of around 6-7 %. There has also been a significant rise in the per capita income and the standard of living. Poverty has also reduced by around 10 %. The service industry has a share of around 54% of the annual Gross Domestic Product while the industrial and agricultural sectors share around 29% and 17% respectively. Due to the process of globalization, the exports have also improved significantly.

 Developments

in transportation and communications

Companies

Transnational

 1.

Technological change, especially in communications technology. Transport is much cheaper and faster. Deregulation. Removal of capital exchange

2.

3. 4.

 5. 6.

Free Trade.

Consumer tastes have changed, and consumers are more willing to try foreign products. Emerging markets in developing countries,

7.

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 . The government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country 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.

 Industrial: Financial: Economic: Political: Informational: Language: Competition: Cultural:

COMPARISON BETWEEN INDIA CHINA

&

Institutional Conditions:

India was mixed economy with large private sector, agriculture sector mostly provide seasonal wages. China mostly a command economy, which until recently had a very small private sector; still substantial state control over macroeconomic processes that have differed from more conventional capitalist

Rates of GDP Growth: :

Rates

of GDP Growth: Indias GDP growth rate fell from 7.35% in 2008-09 to 5.36% till the end of 3rd quarter of the year 2009-10. GDP growth rate fell from 9.6% in 2008-09 to 8.7% till the end of 1st quarter of the year 2009-10.

Chinas

Structural change:

Structural change: China: modern pattern, moving from primary to manufacturing sector, which has doubled its share of workforce and tripled its share of output India: Move has been mainly from agriculture to services in share of output, with no substantial increase in manufacturing, and the structure of employment has not changed much. Share of the primary sector in GDP fell from 60 per cent to 25 per cent in four decades, but share in employment still more than 60 per cent.

Trade patterns:

Trade patterns: China: Rapid export growth involving aggressive increases on world market shares, based on relocative capital attracted by cheap labor and heavily subsidized infrastructure. India: Lower rate of export growth, with cheap labor due to low absolute wages rather than public provision and poor infrastructure development. So exports have not yet become engine of growth, except in services.

Poverty reduction: :
Poverty

reduction: China: Officially 4 per cent of the population now lives under the poverty line.

India:

poverty ratio much higher and persistent, more than 38%.

Negative Impacts (Threats) Increasing the technological gaps and digital divides between advanced countries and less developed countries that are hindering equal opportunities for fair global sharing Creating more legitimate opportunities for a few advanced countries to economically and politically colonize other countries globally

Positive Impacts (Opportunities) Global sharing of knowledge, skills, and intellectual assets that are necessary to multiple developments at different levels

Mutual support, supplement and benefit to produce synergy for various developments of countries, communities, and individuals

Negative Impacts (Threats) Exploiting local resources and destroying indigenous cultures of less advanced countries to benefit a few advanced countries Increasing inequalities and conflicts between areas and cultures

Positive Impacts (Opportunities) Creating values and enhancing efficiency through the above global sharing and mutual support to serving local needs and growth Promoting international understanding, collaboration, harmony and acceptance to cultural diversity across countries and regions Facilitating multi-way communications and interactions, and encouraging multi-cultural contributions at different levels among

Promoting the dominant cultures and values of some advanced areas and accelerating cultural transplant from advanced areas to less

1. 2. 3. 4. 5. 6.

Increase in employment and income Cultural exchange and demand for a variety of products Higher std living Low price with higher quality GDP Increase Education has Increased

1. 2. 3. 4. 5.

Globalization kills the domestic company Decline in demand domestic company Widening gap between rich and poor Decline in income Income Gap Between Developed and Developing Countries

1. 2. 3. 4.

Warding off competitors from low-wage countries. Winning over new customers outside of world. Building a cost-efficient production and development network. Sourcing in low-cost countries

GLOBALIZATION INDEX 2010 list by KOF Index of Globalization

Belgium is at 1st rank with 92.95 globalization index

Austria is at 2nd rank with 92.51 globalization index.

Newzealand is at 3rd rank with 91.90 globalization index.

Russia is at 42 rank with 68.91 globalization index China is at 63rd rank with 62.68 globalization index. Brazil is at 75th rank with 60.38 globalization index. India is at 111th rank with 51.26 globalization index
.

Globalization means the integration of the economies of the world through financial flows which are through exchange of technology and knowledge. It has provided developing countries with a greater access to the markets and technology of the developing countries which has lead to a high living standard and a greater productivity. We come across the impact of globalization on developing countries which not only shows good but also bad impact of globalization on the countries especially developing countries. Thus, Globalization has played a very important roles in every developed and developing countries but mainly in developing countries. Though Globalization is very good for developing countries but in few places it has bad effects on those countries as well.