Globalisation In India

By, Carol Peters Prabhu

. It avoids obstacles to the free flow of goods and services. technology. Creation of environment for free flow of technology. and 4. Creation environment for free mobility of labour among countries. Creation of environment for free flow of capital among countries. capital and labour. 3. 1.What is Globalisation? The term ‘globalization’ refers to the process of integrating various economics of the world. Reduction of tariff barriers to permit free flow of goods and services among countries. 2.

Arguments for Globalisation  Promotion of Foreign Direct Investment  Restructuring Production and Trade Pattern  Utilization of modern technology  Promotion of Exports  Gains to Consumers  Advantage of competition  Increase in the efficiency of banking and financial sectors  Advantage of Free Trade  Improvement of Factor incomes  Gains from Migrations .

Arguments Against Globalization Dominance of Multinational Corporations Adverse effects on Domestic Enterprises Indiscriminate Liberalization Ruin of Traditional Industries Transfer of unsuitable Technology Creation of vested interests Nexus between MNCs and Governments Increase in economic inequality Opposition in developed countries Adverse Effects on culture .

GLOBALISATION IN INDIA Opening the Indian economy to foreign direct investment Removing constraints and obstacles to the entry of MNCs Allowing Indian companies to enter into foreign collaborations Carrying out massive import liberalization programmes .

Case for Globalization of Indian Economy Shift from import –substitution to export led growth strategy Foreign Capital Inflows Globalization and Transfer of Technology Increased Market Access Faster Economic Growth and Poverty Reduction Employment Argument .

Convertibility of the Rupee ii. Strategic Alliance ix.Globalization Strategies i. Joint Ventures vii. Import Liberalization iii. Licensing and Franchising viii. Opening the economy to foreign capital iv. Management Contract . Mergers and Acquisitions vi. Exporting v.

Positive Effects of Globalization for Indian Economy a) b) c) d) e) f) g) h) i) Expansion of Trade Investment Flows Effects on Employment Inflow of Technology Gains to Consumers Expansion of Markets Growth of Enterprise Educative Effect Development of Money and Capital Markets .

Negative Effects of globalization on Indian economy a) b) c) d) e) f) g) h) i) Inequalities widened Transfer of Inappropriate Technology Encouraged Demonstration Effect Double Standards of Developed Countries Feminization of labour in low wage jobs Weakening of Welfare State Adverse effects on Small Enterprises Adverse Effects on Labour Adverse Effects on Culture .

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