globalization - copy

8/2/2019 Globalization - Copy

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We have everything by globalization,

we have nothing byglobalization.


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Globalization describes a process ofeconomies, societies, and cultureshave become integrated through aglobal network of communication.

Globalization help to the operating andplanning to expand businessthroughout the world.

Erasing the differences betweendomestic market and foreign market.

Establishing manufacturing anddistribution facilities done by the worldover.


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Globalization & Liberalizationpolicy was introduced by Dr.MANMOHAN SINGH, in the year1991, who was the financeminister of the country.

The purpose behind the policyis to improve economiccondition as well as standardsof living of people in thecountry.

Mr. ADITYA BIRLA was the firstindustrialist who had initiatedthe policy at the Indian side bysetting up company in

THAILAND & MALESIYA.


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Today, it has become one of the fastestgrowing economies in the world with an averagegrowth rate of around 6-7 %. There has also been

a significant rise in the per capita income and thestandard of living. Poverty has also reduced byaround 10 %.

The service industry has a share of around54% of the annual Gross Domestic Product whilethe industrial and agricultural sectors sharearound 29% and 17% respectively. Due to theprocess of globalization, the exports have also

improved significantly.


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Developments in transportation andcommunications

Transnational Companies


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1. Technological change, especiallyin communications technology.

2. Transport is much cheaper andfaster.

3. Deregulation.

4. Removal of capital exchange


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5. Free Trade.

6. Consumer tastes have changed,and consumers are more willing totry foreign products.

7. Emerging markets in developingcountries,


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started when the government opened thecountry's markets to foreign investments in theearly 1990s. Globalization of the Indian Industrytook place in its various sectors such as steel,

pharmaceutical, petroleum, chemical, textile,cement, retail .

The government of India made changes in itseconomic policy in 1991 by which it allowed direct

foreign investments in the country

The various negative Effects of Globalization onIndian Industry are that it increased competition inthe Indian market between the foreign companiesand domestic companies.


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Industrial:

Financial :

Economic :

Political :

Informational:

Language:

Competition:

Cultural :


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COMPARISON

BETWEEN

INDIA CHINA

&


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InstitutionalConditions:

India was mixed economy with large privatesector, agriculture sector mostly provideseasonal wages.

China mostly a command economy, whichuntil recently had a very small private sector;still substantial state control overmacroeconomic processes that have differed

from more conventional capitalist


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Rates of GDP Growth: :

Rates of GDP Growth: Indias GDPgrowth rate fell from 7.35% in 2008-09

to 5.36% till the end of 3rd quarter ofthe year 2009-10.

Chinas GDP growth rate fell from 9.6%in 2008-09 to 8.7% till the end of 1stquarter of the year 2009-10.


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Structural change:

Structural change: China: modern pattern,moving from primary to manufacturing sector,which has doubled its share of workforce andtripled its share of output

India: Move has been mainly from agriculture toservices in share of output, with no substantialincrease in manufacturing, and the structure of

employment has not changed much. Share of theprimary sector in GDP fell from 60 per cent to 25per cent in four decades, but share inemployment still more than 60 per cent.


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Trade patterns:

Trade patterns: China: Rapid export growthinvolving aggressive increases on world market

shares, based on relocative capital attracted bycheap labor and heavily subsidized infrastructure.

India: Lower rate of export growth, with cheap labor

due to low absolute wages rather than publicprovision and poor infrastructure development. Soexports have not yet become engine of growth,

except in services.


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Poverty reduction: :

Poverty reduction: China: Officially 4 percent of the population now lives underthe poverty line.

India: poverty ratio much higher andpersistent, more than 38%.


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Negative Impacts(Threats)

Positive Impacts(Opportunities)

Increasing the technologicalgaps and digital divides

between advanced countriesand less developed countriesthat are hindering equalopportunities for fair globalsharing

Global sharing of knowledge,skills, and intellectual assets

that are necessary to multipledevelopmentsat different levels

Creating more legitimateopportunities for a fewadvanced countries toeconomically and politicallycolonize other countriesglobally

Mutual support, supplementand benefit to produce synergyfor various developments ofcountries, communities, andindividuals


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Negative Impacts(Threats)

Positive Impacts(Opportunities)

Exploiting local resources anddestroying indigenous culturesof less advanced countries tobenefit a few advancedcountries

Creating values and enhancingefficiency through the aboveglobal sharing and mutualsupport toserving local needs and growth

Increasing inequalities andconflicts between areas andcultures

Promoting internationalunderstanding, collaboration,harmony and acceptance to

cultural diversity acrosscountries and regions

Promoting the dominantcultures and values of someadvanced areas andaccelerating cultural transplantfrom advanced areas to less

Facilitating multi-waycommunications andinteractions, and encouragingmulti-cultural contributions atdifferent levels among


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1. Increase in employment and income

2. Cultural exchange and demand for a

variety of products3. Higher std living

4. Low price with higher quality

5. GDP Increase6. Education has Increased


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1. Globalization kills the domesticcompany

2. Decline in demand domestic company3. Widening gap between rich and poor

4. Decline in income

5. Income Gap Between Developed andDeveloping Countries


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1. Warding off competitors from low-wagecountries.

2. Winning over new customers outside ofworld.

3. Building a cost-efficient production and

development network.4. Sourcing in low-cost countries


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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.

GLOBALIZATION INDEX 2010 list by KOF Index of

Globalization


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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 lobalization index.


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Globalization means the integration of the economiesof the world through financial flows which are throughexchange of technology and knowledge. It has provideddeveloping countries with a greater access to the marketsand technology of the developing countries which has lead

to a high living standard and a greater productivity. Wecome across the impact of globalization on developingcountries which not only shows good but also bad impactof globalization on the countries especially developingcountries.

Thus, Globalization has played a very important roles inevery developed and developing countries but mainly indeveloping countries. Though Globalization is very good fordeveloping countries but in few places it has bad effects on

those countries as well.


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