1. Globalization of the World 2.

World wide integration and deepening of economic activities I ntegrated production and consumption systems F acilitated by IT revolution liberalization and deregulation ! nprecedented mobility of goods services capital and people " vents all over the world strongly interdependent What is Globalization# $. %& 'the( integration of national economies into the international economy through trade direct foreign investment&short)term capital flows international flows of wor*ers and humanity generally and flows of technology&+ ',hagwati In -efense of Globalization p. $( -efinition .. Internationalization 'trade / investment( 0iberalization 'freeing mar*ets( !niversalization 'cultural interchange(&or& Westernization 'Western cultural dominance( % -eterritorialization+ 'compression of time and space( Globalization "ncompasses 1. 1. Globalization of consumption 2 The nation in which a product was made becomes independent of the nationality of the consumer. Globalization )Two types 3. 2. Globalization of production4ownership2 The nationality of the owner and controller of productive assets is independent of the nation housing them. For e5ample 6anada/apos7s assets are owned by foreigners at the same proportion as foreigners own all world assets. 6onse8uently only about $9 of 6anadian assets would be owned by 6anadians. :imilarly 6anadian based firms would have roughly ;<9 of their total assets overseas. Globalization )Two types <. Globalization "5ample =irbus 6onsortium >. ?ointly owned by companies from . countries2 France German ,ritain and :pain. Wings from ,ritain Fuselage and tail from Germany -oors from :pain 6oc*pit and final assembly in France. ;. 1 1@@ suppliers in 2< countries. Aore than $1 percent of components for the consortium/apos7s aircraft are supplied from over 1@@ =merican companies. Bumerous suppliers also are located in the =sia)Cacific. :ingapore Technologies =erospace produces wing ribs and passenger doors for the =$2@ and engine mounts and thrust reverser doors for the =$.@. India/apos7s Dindustan =eronautics 0imited also builds =$2@ passenger doors. 1@. Globalisation Globalisation could involve all these thingsE 11. Integration of "conomies The increasing reliance of economies on each other The opportunities to be able to buy and sell in any country in the world The opportunities for labour and capital to locate anywhere in the world The growth of global mar*ets in finance :toc* Aar*ets are now accessible from anywhere in the worldE 12. Integration of "conomies Aade possible by2 Technology 6ommunication networ*s Internet access Growth of economic cooperation F trading blocs '"! B=FT= etc.( 6ollapse of GcommunismH Aovement to free trade 1$. Trade versus =id# ,enefits of Trade2 Increased choice Greater potential for growth Increase international economies of scale Greater employment opportunities Trade has led to massive increases in wealth for many countries. 1.. Trade versus =id# -isadvantages of trade2 Increase in gap between the rich and the poor -ominance of global trade by the rich northern hemisphere

countries 0ac* of opportunities for the poor to be able to have access to mar*ets "5ploitation of wor*ers and growers Dow far does trade help children li*e these# 11. 6orporate "5pansion Aulti)national or trans)national corporations 'AB6s or TB6s( F businesses with a head8uarters in one country but with business operations in a number of others. Bo matter where you go in the world certain businesses will always have a presence. 13. 6orporate "5pansion 6haracteristics2 "5panding revenue 0owering costs :ourcing raw materials 6ontrolling *ey supplies 6ontrol of processing Global economies of scale 6ontrolling supplies may be one reason for global e5pansion. 1<. 6orporate -omination Iey Issues2 -amage to the environment# "5ploitation of labour# Aonopoly power "conomic degradation Bon)renewable resources -amage to cultures :hell and Bi*eHs activities have come under severe criticism in some 8uarters. 1>. Global Telecommunications 1;. 2@. Aanufacturing -esign 21. Globalization In India 22. 6hina in late 1;>@Hs 2$. 6hina in 2@@1 2.. India in late 1;>@Hs 21. India in the present day 23. WD=T -J TD" CK"LIJ!: FJ!K IA=G": T"00 !:# India in 1;>@ =head of 6hina esp. in free enterprise and per capita earnings India in 2@@1 Full of vigour but political system still trapped in clanship management of the Bation instead of ta*ing charge of enterprise 6hina in 1;>@ :till struggling with 6ommunist "galitarian past and lac* of enterprise 6hina in 2@@1 Government too* charge of enterprise in late 1;>@Hs transforming 6hina into a modern industrial nation which increased per capita income by a factor of 1 2<. We have everything by globalization we have nothing by globalization. 2>. 2;. Globalization and its impact in the Indian economy $@. What is globalisation# :pread of7 manufacturing services mar*ets culture lifestyle capital technology and ideas across national boundaries and around the world. =lso the integration of these geographically dispersed economic and social activities. Duge impacts on people and nations. The whole world is affected by globalisation $1. Globalization in India has allowed companies to increase their base of operations e5pand their wor*force with minimal investments and provide new services to a broad range of consumers. Globalization in India $2. Jne of the maMor forces of globalization in India has been in the growth of outsourced IT and business process outsourcing ',CJ( services. $$. "ffects of Globalization in India $.. "ffects of Globalization# Whether Cositive or Begative $1. $3. =ccess to television grew from 1@9 of the urban population '1;;1( to <19 of the urban population '1;;;(. 6able television and foreign movies became widely

available for the first time and have acted as a catalyst in bulldozing the cultural boundaries. =ll these technologies have changed perceptions and dreams of ordinary people. !nmarried boys and girls are sharing same apartment and staying away from their parents. Indian youths leaving education in mid)way and Moining AB6/apos7s 6ultural 6hanges In India $<. There has been a increase in the violence particularly against women. :cientific and technological innovations have made life 8uite comfortable fast and enMoyable. Aore availability of cheap and filthy material '6-/apos7s or -L-/apos7s of Dollywood movies porn movies se5 toys foreign channels li*e ATL( in the name of liberalization. In India land)line or basic phone was a prestige symbol few years bac* but now you find people riding bicycle with a mobile in hand tal*ing or listening music or even clic*ing cameras of their phones targeting pretty girls or ladies. 6ultural 6hanges In India $>. :ociety has become more open compared to its earlier conservative loo* due to e5posure to other cultures through -TD or cable networ*. This has contributed to dating celebration of friendship days4valentine day and resulted to rising number of call girls and ma*e them more prone to se5ually transmitted diseases. Ceople are less worried for government Mobs as AB6/apos7s and private or public sector are offering more lucrative Mobs. 6ultural 6hanges In India $;. "5tension of internet facilities even to rural areas. In place of old cinema halls multiple5 theatre are coming up. Jld restaurants are now replaced by Ac. -onalds. Fast food and 6hinese dishes have replaced Muice corners and Carathas. Aore inflow of money has aggravated deep rooted problem of corruption# Aore scandals and scams compared tp pre)globalization era. Girls being blac*mailed by their e5)boy friends using AA: ,an on TL channels for showing se5 and violence violating all norms Girls being raped in moving vehicles There is deterioration in social values as evident from less respect for ladies older people 6ultural 6hanges In India .@. Indian "conomy under Globalization Iey "lements "conomy opened up to imports of goods services and capital Crivatization vigorously pursued -eregulation accelerated .1. India2 Fastest Growing Free Aar*et -emocracy .2. Fastest G-C growth of ;.. percent in 2@@3)@< since last 1> years Growth in sectors '2@@3)@<(2 Industry2 1@.;9 :ervices2 119 =griculture2 2.<9 The Indian economy has witnessed an unprecedented growth&. ,ooming Indian services and industry sector are providing the re8uired impetus to the economic growth .9 >.19 <.19 >..9 ;..9 .$. India/apos7s "5port and Import ... India/apos7s F-I .1. !:- 12.1 billion Tata :teel buys 6orus Clc !:- 3 billion Dindalco ac8uired Bovelis Inc. !:- 1.1> billion "ssar :teel ac8uired =lgoma :teel !:- 1.3 billion :uzlon "nergy 0td. ac8uires K"power !:- <$@ million Lideocon Industries ac8uired -aewoo "lectronics 6orporation 0imited .3. :ome facts about India Duge country large numbers big territory2 ,illion plus people over 2.1 million s8uare *ilometers -iverse languages ethnicities religions 6aste and other pre)capitalist relations

.<. <2 9 live in rural areas '2@@1( <$ 9 of rural labour force in agriculture and allied activities. ' Aales 33.1 9 Females >$.3 9( ' 2@@.)@1 ( =s of 2@@.)@1 estimated employment was .1< million of which <@ million were regularly employed 1$@ million casual and 21< million self)employed >3.$2 9 of the employed were in the unorganized sector rest in organized sector IndiaHs Wor*ing Ceople .>. = country of savers has become spenders. Greater employment opportunities for the masses. 6ompanies and government have changed the way they do business to cut the red tapisum. The rupee has gained on the dollars so it is less advantage for Indians to live overseas and send money bac* home. "conomic 6hanges .;. The rate of growth of the G-C of India has been on the increase from 1.3 9 during 1;>@);@ to <9 in the 1;;$)2@@1 period. In the last four years the annual growth rate of the G-C was impressive at <.19 '2@@$)@.( >.19 '2@@.)@1( ;9 '2@@1)@3( and ;.29 '2@@3)@<(. The foreign e5change reserves were N $; bn '2@@@)@1( N1@< bn '2@@$)@.( N1.1 bn '2@@1)@3( and N1>@ bn 'in February 2@@<(. The ,right :ide of Globalization 1@. IndiaHs trade deficit during 1;;@)1;;1 to 2@@3)2@@< ranged between $.39 to 3.;9 of G-C. The fluctuation in Foreign portfolio Investment were much sharper then F-I The FCI rate decreases by $39 from period 1;;@)@@ and again shows upward growth rate in period @@)@< was 22.19. F-I 'net( shows a gradual upward growth from N;< million in 1;;@)1;;1 to N$2<2 million in 2@@@)2@@1 and again rising and touching the pea* of N><<; million in 2@@3)2@@<. 11. :hare in world e5ports raise from @.129 in 1;;@ to 19 in 2@@<. In the rate of growth of per capita income there has been a sharp acceleration in the growth of per capita income almost doubling to an average of <.29 p.a. '2@@$)@. to 2@@<) @>(. 12. Industrialisation did not ta*e place as per e5pectation. :hare of agriculture in the G-C went down drastically to 2. per cent and further to 22 per cent in 2@@3) @<. The number of rural landless families increased from $1 per cent in 1;>< to .1 per cent in 1;;; further to 11 per cent in 2@@1. -ar*er :ide of Globalisation 1$. 6orruption lac* of efficiency in wor* and ineffective management became the common features of public sector. -ecreased F-I2 The data of F-I shows 1@9 'appro5( gradual upward growth from ;@)@@. The F-I growth decreased by 2@9 from period 2@@@)@<. 1.. Jur progress in education has been slow and superficial without depth and 8uality to compete the international standards. Ceople depending on agriculture in India is about 3@9 where as the same for !.I. Is 29 and !.:. Is 29. 11. Growing Indian "conomy 13. 2@1@ G-C F !:- 1.$3 trillion G-C growth rate F ;9 :ervices contribution F 3@)319 ,alance of Trade F Begative balance should increase with surging imports versus e5ports Investment goal F !:- $<@ billion 2@@> G-C F !:- 1.13 trillion G-C growth rate F ;.19 :ervices contribution F 3@9 ,alance of Trade F Begative balance should increase with surging imports versus e5ports Investment goal F !:- $@1 billion 2@@3 G-C F !:- 1;@ billion G-C growth rate F ;9

:ervices contribution F 1.9 ,alance of Trade F !:- ')(.3.2 billion Investment goal F !:- 21@ billion 1<. To conclude the benefits of economic reforms on the Indian economy would get achieved only if the negative impacts are settled or neutralized. Dence along with globalisation and restructuring the economy efforts. 6onclusion 1>. Indian "conomy Jpportunities !nlimited