MADE BY : NIKHIL GUPTA

GLOBALISATION AND OUTSOURCING

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher ( Mrs. Anandita Chakravarty )

&( Mrs. Rakhi Pahwa) as well as our principal ( Mrs. Asha Katyal )

who gave me the golden opportunity to do this wonderful project on the topic

( Globalization & Outsourcing )which also helped me in doing a lot of Research and I came to know

about so many new things . I am really thankful to them.

Secondly I would also like to thank my parents and friends who helped me a lot in finalizing this project within the limited time frame.

What is Globalization ?

Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.

Why Globalization ?

Globalization – A “smaller world” People are closer together A world closer in time and space A world without borders Goods, services and ideas move faster or instantly. Driven by technology

Transportation – Shipping, Containerization Air travel Communication – Television, the Internet

MERITS OF GLOBALISATION

•There is an International market for companies and for consumers there is a wider range of products to choose from.•Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction.•Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.•Technological development has resulted in reverse brain drain in developing countries.

DEMERITS OF GLOBALISATION

•There is an underlying threat of multinational corporation with immense power ruling the globe.•For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.

•The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.•There is a greater threat of spread of communicable diseases.

WHAT IS OUTSOURCING ?

In Business, Outsourcing Is The Contracting Out Of A Business Process To A Third-party. The Term "Outsourcing" Became Popular In The United States Near The Turn Of The 21st Century. Outsourcing Sometimes Involves Transferring Employees And Assets From One Firm To Another, But Not Always. Outsourcing Is Also Used To Describe The Practice Of Handing Over Control Of Public Services To For-profit Corporations. 

Outsourcing Includes Both Foreign And Domestic Contracting, And Sometimes Includes Off shoring Or Relocating A Business Function To Another Country.[ Financial Savings From Lower International Labour Rates Is A Big Motivation For Outsourcing/Off shoring.

GLOBALIZATION IMPACT

ON AGRICULTURE

GLOBALISATION

Globalization refers to increases the

movement of all economic aspects cutting across

boundaries of native states aiming at the integration

of the Domestic economy with Global economy.

Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it

slowed down during the period from the start of the First World War, suffered from great depression and

until the end of Second World War. This slowdown can be attributed to the inward-looking policies pursued by

a number of countries in order to protect their respective industries... however, the pace of

globalization picked up rapidly during the fourth quarter of the twentieth century.

EVOLUTION

GROWTH OF AGRICULTURE

Crop

Growth rate in Agriculture(%)

Pre – reform period 1980-

1990

Post reform period 1996-2006

a. Agriculture 3.6 2.6b. Forestry 4.2 2.5c. Fishing 0.1 0.5

Crop

a. Food grains 2.9 1.5b. Cereals 3.1 1.8c. Rice 3.7 2.0d. Wheat 3.6 3.6e. Coors cereals 0 -1.1f. Pulses 1.4 0.5g. Non food grains 4.3 2.0

IMPACT OF GLOBALIZATION ON

AGRICULTURE IN INDIA• Agriculture acquired 17% of India’s GDP in

2008. • 60% of population still depends on agriculture

for their livelihood. • Occupied 43% of India’s geographical areas. • Agriculture Scientists are applying new

technologies and instruments in growing crops.

• Different state governments of India are taking initiative to literate the farmers.

Globalization affects agricultural sector as crop imports could be traded at cheaper

prices, and could be exchange for another

commodity because of the free trade.

Strategies Mobilization of the small farmers for regional campaigns.� Establishing a Mechanism, to challenge the MNC’s� Having deliberations with bankers and Industrialists in order to consult them with �

NGO’s

Setting goals with specified objectives so that they reach the grass root level of �the rural societies.

Keeping gender balance� Forming net work among leaders in various levels with solidarity and commitment� Creating common understanding and purpose among the people in all the sectors �

of society

Growth rate in agricultureFive year plan Growth rate

in GDP of agriculture and allied activities

Growth rate in overall GDP

1.Seventh plan 3.2 6.0

2.Annual plan 1.3 3.5

3.Eight plan 4.7 6.7

4.Ninth plan 2.1 5.5

5.Tenth plan 2.3 7.6

6.Eleventh plan 2.7 9.0

CONCLUSION• Market-demand research in the importing

countries has to be strengthened and protection could be planned accordingly in terms of quantity and quality.

• Long-term price trends favor fishery, livestock, traditional products, and agriculture is to have a second Green Revolution. In essence, the second Green Revolution will keep the world green and save if from becoming a dreary desert.

• Government must introduce rigorous measures to end corruption in check posts and reduce taxes on transport firms to reduce cost of movement.

A STORY…

IMPACTS ONGOVERNMENT & POLITICS

Impact on Government

Globalization affects the size and composition of government expenditures.

The globalization process has led to a growing interdependence of fiscal policies affecting inter alia, the composition of government expenditures.

Globalization will affect government’s ability to continue providing the social protection at the level of the past decades.

Of the factors influencing the duration of economic growth in both developed and developing countries, income equality has a more beneficial impact than trade openness, sound political institutions, and foreign investment.

Impact on Politics

In general, globalization may ultimately reduce the importance of nation states. Supranational institutions such as the European Union, the WTO, the G8 or the International Criminal Court replace or extend national functions to facilitate international agreement

IMPACT OF GLOBALIZATION ON INDIAN POLITICS

Many commentators pronounce on this complex and multi-faceted topic with great confidence, but an overview of the literature suggests that we are still struggling to understand it. An obvious characteristic of globalization is that money, goods and manufacturing have become far more mobile than they once were, with the result that corporations are freer than ever to move, and finance to invest, wherever they choose. Therefore, national governments are less able to control the activities of mobile businesses than in the past, while corporations and finance are in a better position to dictate to national governments. They do this by relocating their activities to - and buying the currencies of - states whose policies they approve and abandoning, or threatening to abandon, the rest.

The following point illustrate the impact of globalization on

Indian politics 1. It led to decentralization of powers to the states with the centre providing more powers to the states in the administrative, financial and legislative spheres2. Success of globalization depends on implementation of policies at the local level3. The phase of confrontational federalism had resulted in divergent policies between the centre and the states, whereas globalization has resulted in convergence of policies.

5. The states adopting short term policies like lowering tax rates to attract foreign investment. But over a period of time, they have realized the fact that those short term measures can only result in deterioration in finances without bringing the desired results.6. Institutions like planning commission played a key role during the pre-liberalization days but the situation has changed with the advent of globalization with states as well as the center realizing the fact that both are equal and active partners in the developmental process.

4. Economic development is heavily dependent on political stability and peace and harmony.

GLOBAL CIVIL SOCIETY

Idea of civil society, “We the people,” dates back to Preamble of the Constitution, US First Amendment’s freedom of association and findings of Alexis de Tocqueville in “Democracy in America.”

Civil society can be a bowling league, a PTA a Rotary or Optimists Club or it can be as large as the Red Cross, with international and national components.

Civil society is often described as the “Third” or “Independent Sector” after the Government and the Market Economy.

Civil society organizations (CSOs) are usually associated with nonprofit (with a capacity to receive non-taxable donations) or Non-governmental Organizations (NGOs, usually operating internationally).

Global Civil Society operates independently of both government and inter-governmental organizations, but is closely involved with both of them.

CSOs are often identified as “interest groups” or even “pressure groups” for the role they play in lobbying governments and IGOs on issues of concern.

Globalization is not a homogeneous process. In order to preserve the Indian state's fundamental objectives of equity and growth, Indian federalism might be compelled to move towards enhancing the role of the Central government.

CONCLUSION

The decentralisation is evident in the installations of the constitutionally approved third tier of the local government. A decentralisation of powers might also be necessary to accommodate the active participation of the voluntary and non governmental organisations.

Globalization as Friend

Rapid Economic Growth More of Investment More of Employment Increase in the Efficiency of Domestic

companies. The Government becomes more

efficient. New Inventions and Discoveries. New Inventions and Discoveries. Strengthening of Democracy. Cultural linkage.

Globalization as Foe

Exploitation of Underdeveloped Countries. Increase in Unemployment. Widening of Rich-poor Gap. Harmful Effects of Consumerism. Adverse Effects on Social Security and Social Welfare. Harmful Effects on Small Industries and Small

Business. Cultural Homogenization. Hostile to Humanism. Erosion of Democracy. Destructive of Environment.

BIBLIOGRAPHY

• www.google.co.in• www.googleimages.co.in• www.wto.com• www.globalizationabout.com•www.bbcglobalization.com• www.wikipedia.org

INTERNET

BOOKS

• Textbook : Economics X• India 2020