Subject – Law and Justice in Globalization

Factors Leading To Globalisation

LLM Batch 2018 – 2019

Presentation by
VIRAL BHANUSHALI
Roll No – A002
Under the guidance of
PROF SUNIL GEORGE

Specialization : Corporate Law

Date – 17.09.2018
Introduction
The term globalisation derives from the word globalize, it is a
process by which goods , services , capital , people , information and
ideas flow across national borders – Grewel.
Globalization or globalisation can be also called as process of
Interaction and integration between people, companies, and
governments worldwide.
“All those processes by which the peoples of the world are
incorporated into a single world society.” –Martin Albrow.
Globalization has grown due to advances
in transportation and communication technology.
Developing countries have to manage the process of globalization
with a view to drive maximum benefits while minimizing risks.
Example :- Your Everyday Life
• Wake up to a alarm clock made in china.
• slip on Adidas sandals made in Indonesia
• put ur American eagle clothes from Mexico
• Unplug your Nokia phone made in the U.S and Taiwan
• Hop in Toyota made in Kentucky
• listen to cold play from England
• Grab a Starbucks coffee with beans harvested in Columbia.
Factors leading to Globalisation
 Specialized skilled labour & Cheap Cost Labour- Specialization
increases the amount of goods and services that people produce and
consume. For example: different community workers specialize in the jobs
they do.
 Technological advancement- Technology is the vital force in the modern
form of business globalization. Technology has revolutionized the global
economy and has become critical competitive strategy. Technological
advancements have helped a lot in creation and growth of global market.
 Global Brands- Global Brands are the brands that are recognized
throughout much of the world. Companies intending to create global
brands need to do the following : identify the relative attractiveness of
each market for your brand , know the category and brand indices in each
country in which your brand operates , establish a branding score card that
can be applied country by country .
 Cheaper Sea Routes- The cost of ocean shipping have come down, due to
cheap sea routes , bulk shipping , and other efficiencies. The lower unit
costs of shipping products around the global economy helps to bring prices
in the country of manufacture closer to those in export markets , and it
makes markets more contestable globally.
 Universal Problems - To curb the problems like terrorism which is
considered as a universal problems , all the countries have to work together
with the common intention .
 Better political relations- The better Political Relations between the
countries is one of the most important factors leading to globalization.
Because of such factors trade of goods and services is possible all over the
globe without any difficulty. There are many treaties and policy made
between the countries to make the relations better between them . The
desire of doing business in the other countries depends on the restrictions
and freedom given by the countries to each another .
 Merger and acquisitions - The inclination towards globalization
and expanding through mergers and acquisitions is a rising phenomenon
nowadays. Finally, the globalization trend has set in. As companies plan to
expand their territory, global expansion is what they aim at. And this is
where the marriage of two overseas companies gives rise to the concept of
globalization.
 Lesser Protection- Old forms of non- tariff protection licensing and foreign
exchange controls gradually been dismantled . Borders have opened and
average imports tariff levels have fallen.
 Tax Benefits- The desire of business to benefit from lower unit labour cost
and another favourable production factors abroad has encouraged countries
to adjust their tax systems to attract foreign direct investment (FDI). Many
countries have become engaged in tax competition between each other in a
bid to win lucrative foreign investment projects
 IPR - There was need to protect IPRs of innovative countries and
companies to avoid conflicts arising from counterfeit products.
LPG Model in India
 The Government announced a New Economic Policy on July 24,
1991. This new model of economic reforms is commonly known as
the LPG i.e Liberalisation , Privatisation and Globalisation . Prime
minister of country, P V Narasimharao initiated economic reforms
with the help of Dr. Manmohan Singh. The reforms did away with
Licensee Raj , reduced tariffs and interest rates and ended many
public monopolies allowing automatic approval of foreign direct
investment in many sectors.
Benefits and costs
Benefits –
 Division of labour
 Reduce monopoly profits
 World's poorest countries
 Increases wealth & efficiency in developed & developing
nations .
Costs –
 Trade Imbalances
 Inflation
 Inequality
 Unemployment
 Dominant Global Brands
Present Scenario in India
Impact Of Globalization On Indian Companies
TITAN & BAJAJ AUTO LTD
Agriculture; The Breaking Backbone Of Indian Economy
Poverty, The Grey Face Of India
Unemployment; The Rosy Picture
Mergers and Acquisitions - SMALL COMPANIES GETTING TAKE
OVER BY MNC’S – “WALMART & FLIPKART”
Globalisation And Climate Change
Increase of Imports far greater that Increase of Exports
Legal Analysis
 1. Criminal laws
Retributive
Reformative
 2. Euthanasia Law
Passive & Active
 3. Children and Women
 4. Alternate Dispute Resolution
 5. Labour and Employment Law
Literature review
“Sanket V.Ravan” , Impact Of LPG On Indian Economy ,
Prime International Research Journal, Vol. I, Issue 4,
December, 2014 , ISSN : 2349-2139.
“V.R.Rajan” , GLOBALISING INDIAN INDUSTRIES
Published by Deep & Deep Publications PVT. LTD ,
ISBN : 81-7629-100-5.
“Dr Madhumita Deb And Dr Sanjay Sam”globalisation And
Its Impact On Women In India;ISSN Online – 2394 – 5869.
“Datt & Sundharam’s” , Indian Economy published by
S.Chand & Company Pvt Ltd, 71st Edition , ISBN : 978-
93-854-0174-9.
Role of Judiciary
Vishaka & ORS VS state of Rajasthan & ORS 1997
Aruna Ramchandra shanbaug VS UNION OF INDIA & ORS
2011
 Conclusion
The advent of globalization as a result of LPG has both positive and
negative impacts on our economy . While one group of people argue
that globalization provides greater opportunities , opens up new
markets , promotes the use of better technology and increases the
efficiency of products , another group of people feel it does not
protect the domestic industries particularly in developing nations .
From India’s perspective , globalization has improved our conditions
of living and opened up employment in fields like entertainment , IT ,
telecommunication , travel and hospitality.
The End
Thankyou