GLOBALISATION AND ITS IMPACT

LEARNING OBJECTIVES
● To outline the phases of globalisation
● To analyse the impact of globalisation in India
● To discuss the meaning and scope of
globalisation
● To study recent developments in various
sectors and their impact on business.

2
Globalisation
● Globalisation is the term used to describe the
process of removal of restrictions on foreign
trade, investment, innovations in
communications and transport systems.

3
Driving Factors for
Globalisation
(i) Increased international trade
(ii) The growth of multinational corporations
(iii) The internationalisation of finance
(iv) The application of new technologies in all
these operations, especially computer and
other information technologies

4
Globalisation—Phases
● 1870–1914: First Wave of Globalisation
● 1914–1945: Retreat to Nationalism
● 1945–1980: Second Wave of Globalisation
● 1980 onwards: Third Wave of Globalisation

5
Globalisation Indicators
● Foreign Direct Investments (FDI)
● Foreign Portfolio Investments (FPI)
● Global Governance by International
Organisations like World Trade Organisation
● Business Restructuring—Flexibility and
Closeness to Market

6
Impact of Globalisation on
Indian Business Environment
(i) Liberalisation (internal and external)
(ii) Extending privatisation
(iii) Redirecting scarce public sector resources
to areas where the private sector is unlikely
to enter
(iv) Globalisation of the economy
(v) Market-friendly State

7
Sector-wise Analysis
● Telecom Sector
● Insurance Sector
● Retail Sector
● Pharmaceutical Sector
● FMCG Sector
● Textile Sector
● Agriculture Sector
● Automobile Sector