Globalization Globalization may be defined as a primarily economic phenomenon, which involves increasing interaction and integration of national economic
systems. This leads in turn to growth in international trade, investment and capital flows. Moreover, there is a rapid increase in cross-border social, cultural and technological exchanges because of the phenomenon of globalization. After the
adoption of globalization, the country began to experience rapid economic growth, as markets opened for international competition and investment. The concept of Globalization infers that the globe is a single unit which functions as one when it comes to decision-making. In other words, Globalization implies the free movement of goods, services and capital throughout the world. Globalization involves the opening up of national economies to global markets. Thus globalization affected each and every sector of the economy including the banking sector. Globalization led to the overall development of the banking sector industries. The arrival of foreign and private banks with their superior, sophisticated technologybased services forced Indian Banks also to follow the same by going in for the latest technologies so as to meet the threat of competition. It also led to the development of Software Packages for Banking Applications in India. Due to this, even those who opposed computerization in government and banks changed their perspective and within a few years our country became a superpower in Information technology. The entire banking sector has undergone a restructuring during recent years as a result of recent developments. The Information Technology revolution has made it possible to provide ease and flexibility in operations to customers thus making life simpler and easier. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends, customers both
Individuals and Corporate are now demanding better services with more products from their banks. The financial market has turned into a buyer's market. Banks are also coping and adapting with time and are trying to become one-stop financial supermarkets. The market focus is shifting from mass banking products to class banking with the introduction of value added and customized products. After globalization, the Indian banking system has become dependent on the global system. Thus, if any problem arises in the global system, it will also affect the Indian banking system. Thus, this over dependence on foreign economy may cause various problems. One of the other matters of concern is the matter of ownership and control. In the near future, India will be forced to apply the norms of developed countries to the Banking Industry. Consequently, many Indian banks
Thus. globalization has both positive and negative effect on the banking sector of the economy.(including some of the biggest) will show very poor return ratios and dozens of banks will go bankrupt.
Worldwide structures grew more quickly than any transnational regulatory regime. Particularly movement of material and goods between and within national boundaries. Industrialization allowed cheap production of household items using economies of scale. although considerable barriers remain to the flow of labour.emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. when Jewish and Muslim traders and explorers established a sustained economy across the Old World resulting in a globalization of crops.
Effects of Globalization
The effects of Globalization are manifold. owing to the marketing strategies undertaken by different corporations. globalization is usually recognized as being driven by a combination of economic. and services and labor. This in turn. much of the industrialized world entered into a deep recession.emergence of worldwide financial markets and better access to external financing for borrowers. migration. However. Globally significant crops such as sugar and cotton became widely cultivated across the Muslim world in this period. and
cultures have become integrated through a globe-spanning network of communication and execution. International trade in manufactured goods increased more than 100 times Financial . societies. Globalization in this period was decisively shaped by nineteenth-century imperialism. the instability of the global financial infrastructure dramatically increased. sociocultural.. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade. Globalization gives birth to markets based on industrial productions across the world.Globalization
Globalization describes an ongoing process by which regional economies. while the necessity of learning Arabic and completing the Hajj created a cosmopolitan culture The 19th century witnessed the advent of globalization approaching its modern form. and biological factors. investment. and the spread of technology. Some analysts say the world is going through a period of deglobalization after years of increasing economic integration. capital. as evidenced by the financial crisis.
. it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods. while rapid population growth created sustained demand for commodities. widens the access to a diverse variety of foreign commodities for consumption of the customers. affecting various aspects of the world economy to bring about overall financial betterment. Up to 45% of global wealth had been destroyed by the global financial crisis in little less than a year and a half. political. knowledge and technology. In late 2000s.. trade. The effects of Globalization exert intense influence on the financial condition as well as the industrial sector of a particular nation.
The Islamic Golden Age was an important early stage of globalization. technological. capital. In d u st ri a l . When used in an economic context.
the United States has enjoyed a position of power
. Political .Economic .realization of a global common market. Politically.some use "globalization" to mean the creation of a world government which
regulates the relationships among governments and guarantees the rights arising from social and economic globalization. The interconnectedness of these markets however meant that an economic collapse in any one given country could not be contained. based on the freedom of exchange of goods and capital.
Companies have set up industries causing pollution in countries with poor regulation of pollution.
The negative effects of globalization:
Opponents of globalization point out to its negative effects. the desire to increase one's standard of living and enjoy foreign products and ideas.among the world powers. Enemy nations can spread propaganda through the Internet. Cultural . and practices and their ideas of the meanings and values of particular spaces. Countries move to market sectors that they are better at. With the influence of globalization. Job insecurity. Now people live in constant dread of losing their jobs to competition. Just look atChina and India. advent of new categories of consciousness and identities which embodies cultural diffusion. Globalization has led to exploitation of labor. Terrorists use the Internet for communicating among themselves. This simply means that the labor in a country is going to do what it's best at. Increase in the number of standards applied globally Religious-The spread and increased interrelations of various religious groups. Technical-Development of a Global Information System. The standards of living were extremely bad. and participate in a "world culture Social . Local industries are being taken over by foreign multinationals. No long will businesses be able to corner markets because politicians protect them.Before globalization they were very poor countries. including humanitarian aid and developmental efforts. in part because of its strong and wealthy economy. Bad aspects of foreign cultures are affecting the local cultures through TV and the Internet. People that could never afford a car are now getting them
. These countries having mega economic booms.development of the system of non-governmental organizations as main agents of global public policy. ideas. Everyone grows more prosperous. Our labor is better served doing something beneficial.
The Positive effects of Globalization:
businesses to compete on a global scale. This allows the market place to really
work and gives consumers a better advantage. They'll now to compete with foreign businesses that may or may not be able to do business more efficiently. Earlier people had stable. Some of them are listed below. adopt new technology and practices. permanent jobs. Terrorists have access to sophisticated weapons enhancing their ability to inflict damage. global telecommunications infrastructure. There is no need for Americans to do manufacturing when someone inChina can do it better.growth of cross-cultural contacts.
net migration rates.Globalization in the era since World War II has been driven by advances in technology which have reduced the costs of trade. over-fishing of the oceans and other degradations of the natural environment. and so on. The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO).g. and data on cultural proximity is calculated. it can be measured in different ways. or foreign direct investment.The Global scenario group. regulation of outer-space. inward or outward migration flows. economies. data on information flows. Goods and services. migration. as described above. Solutions to these problems necessitate new forms of cooperation and the creation of new global institutions.
Looking specifically at economic globalization. data on personal contact. global trade and finance. broadband) To what extent a nation-state or culture is globalized in a particular year has until most recently been measured employing simple proxies like flows of trade.Labor/people. The world increasingly is confronted by problems that can not be solved by individual nation-states acting alone.g. Myanmar the Central African Republic and Burundi. originally under the auspices of GATT. and communications. The GSG maintains that the future character of this global society is uncertain and contested. international terrorist networks. exports plus imports as a proportion of national income or per head of population . The index measures the three main dimensions of globalization: economic. economic restrictions. Other bi. e. following the advent of the UN and the Bretton Woods institutions. In addition to three indices measuring these dimensions. proportion of populations (and rates of change thereof) using particular inventions (especially 'factor-neutral' technological advances such as the telephone. an overall index of globalization and sub-indices referring to actual economic flows. international research & development flows. to mediate trade disputes and set up a uniform platform of trading. views globalization as part of the shift to a Planetary Phase of Civilization. an environmental research and forecasting organization. Data are available on a yearly basis for 122 countries.Capital.g. because soon they will be the adults living out the results of
. characterized by global social organizations.and trilateral trade agreements. e. and political. and trade negotiation rounds. e.
Measuring Attitudes to Globalization
Measurement of attitudes toward globalization were sought after in a 2003 worldwide globalization study. social. A multivariate approach to measuring globalization is the recent index calculated by the Swiss Think tank KOF. global warming. motorcar. The study focused on teenagers' perceptions towards globalization and globalism. e. weighted by population . there has been an explosion in the reach and power of Multinational corporations and the rapid growth of global civil society. which led to a series of agreements to remove restrictions on free trade. Since the end of WWII. inward or outward direct investment as a proportion of national income or per head of population Technology. including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade. Examples include cross-boundary air and water pollution.g.
yet. The proportion of the world's population living in countries where per-capita food
. a professor (Wirtschaftswissenschaft Seminar) at the Eberhard Karls University of Tuebingen. International teens were more globalists. Importantly. from New York. The sample for this study included two hundred teenagers between the ages of 14 and 18. and culture. with the greatest improvements coming in economies rapidly reducing barriers to trade and investment. and culture will depend on bringing the concepts of globalization and globalism together. They see globalization as the beneficial spread of liberty and capitalism. and former World Bank employee Andrew Mack. it was suggested that the future of culture and trade will depend on the rate of technological progress. trade. The locations were urban. with all countries involved in the trade benefiting. all teens were very positive towards technology. More so. this leads to lower prices. and the Philippines. Globalization categories included immigration. economist. and immigration. consumption of international goods. and diplomatic relations. The results of the research suggested that both American teenagers and international teenagers are natural globalists and are largely in favor of globalization. In general. whereas worldwide statistics strongly supports globalization:The percentage of people in developing countries living below US $1 (adjusted for inflation and purchasing power) per day has halved in only twenty years. Infant mortality has decreased in every developing region of the world. Lebanon. Supporters of globalization argue that the anti-globalization movement uses anecdotal evidence to support their protectionist view. more employment and higher output. technology. Teenagers in New York had higher levels of support for globalization than globalism.today's policy. Topics of globalization and globalism were grouped into sub-categories.Libertarians and other proponents of laissez-faire capitalism say higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are both ends in themselves and also produce higher levels of material wealth. personal freedoms.
Supporters of free trade point out that economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources. Life expectancy has almost doubled in the developing world since WWII and is starting to close the gap to the developed world where the improvement has been smaller. The study examined the thesis of: Teenagers are natural globalists & Teenagers are afraid of globalization. Finally. and global consulting principal. Azerbaijan. trade. Democracy has increased dramatically from almost no nation with universal suffrage in 1900 to 62.5% of all nations in 2000. some critics argue that more detailed variables measuring poverty should instead be studied. the Internet seems to be one of the most important tools in linking teenagers globally and this suggests that this sort of communication should be developed around the world at a faster rate. The study suggested that the future of international technology. There was a survey administered with input from Gene Ellis. Globalism included consumption. cultural exchange. Income inequality for the world as a whole is diminishing. trade.
cars. They thus see too little capitalism. to which the self-styled 'global justice movement' objects.Between 1950 and 1999. Some pro-capitalists are also critical of the World Bank and the IMF. not too much. They also note that some of the resistance to globalization comes from special interest groups with conflicting interests. who are protected from competition from the developing world by high tariffs and receive very large subsidies from the European Union.
. radios. and telephones per capita. not corporations.200 kilojoules) per day decreased from 56% in the mid-1960s to below 10% by the 1990s. one of the leaders of the movement. global literacy increased from 52% to 81% of the world.supplies are less than 2. like Western world unions. some of these improvements may not be due to globalization. arguing that they are corrupt bureaucracies controlled and financed by states. also represent French farmers. However. or may be possible without the current form of globalization or its perceived negative consequences. There are similar increasing trends for electric power. as well as the proportion of the population with access to clean water. instead leaving the common people to pay the debts later. Many loans have been given to dictators who never carried out promised reforms. Women made up much of the gap: Female literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000. The percentage of children in the labor force has fallen from 24% in 1960 to 10% in 2000. José Bové.200 calories (9.