GLOBALIZATION & IT’S IMPACT

BHUMIKA(08)
HARENDRA(22)
IQBAL(38)
KAMAL(29)
KOMAL(32)
GLOBALIZATION??
 Meaning of GLOBALIZATION

• it is the flow across national boundaries of goods

and services ,capital, people, technology, ideas,
and culture.

• Vasudhaivh kutumbkum.

• It refers to the expansion of economies beyond

national borders
 Why globalization
• Factors to increase globalization-
1. Industrialization
2. Endless need
3. Worldly problem-1) Natural 2.) Social
4. Communication networks.
 Factors affecting globalization
1. Technological change, especially in
communications technology
2. Transport is much cheaper and faster
communications technology.
3. Deregulation.
4. Removal of capital exchange controls.
5. Free Trade
6. Consumer tastes have changed, and consumers
are more willing to try foreign products
 Evidence of Globalization

World trade increased more than:

– 20% between ’50 and ’98
– 25%from ’70 to ’02
FDI annual flows increased more than:
– 10% from ’84 to ’98, or
– 50%between ’75 and ’00
– Declined about 50% between ’00 and ’03
 “Drivers” of Globalization:
Technological Change

 Globalization of markets and production

 Telecommunications and microprocessors
 The internet and the world-wide web
 Transportation technology
Globalization including these things
Global Institutions’ Emergence

 World Trade Organization (succeeded GATT)

 International Monetary Fund (IMF)

 World Bank
 CORPORATE EXPANSION
Multi-national
or trans-national
corporations (MNCs or
TNCs)

• Any corporation registered and operating in more than

one country at a time, usually with its headquarters in
a single country.
 The positive aspect of globalization

• Globalization has a positive side as well. Supporters of globalization argue

that it is good and beneficial. Some of their arguments are listed below.
• Globalization has created the concept of outsourcing. Work such as
software development, customer support, marketing, accounting and
insurance is outsourced to developing countries like India.
• So the company that outsourced the work enjoys the benefit of lower
costs because the wages in developing countries is far lower than that of
developed countries. The workers in the developing countries get
employment. Developing countries get access to the latest technology.
• Increased competition forces companies to lower prices. This benefits the
end consumers.
• Increased media coverage draws the attention of the world to human
right violations. This leads to improvement in human rights.
 The negative effects of globalization

• Fast food chains like McDonalds and KFC are spreading in

the developing world. People are consuming more junk food
from these joints which has an adverse impact on their
health.

• Bad aspects of foreign cultures are affecting the local

cultures through TV and the Internet.
• Enemy nations can spread propaganda through the Internet.
• Deadly diseases like HIV/AIDS are being spread by travelers
to the remotest corners of the globe.
 Illustrative world trade flows ($billions)

194 Western Europe 241

intratrade: 1430
194
227
227
200 241
North America 200 Asia / Pacific Rim
intratrade: 465 intratrade: 632
382 393
382 393

365 279

137 Rest 381381

Rest
of
ofworld
world
137
intratrade:
intratrade:
140
175
175
313
313
 Impact of globalization on India
• Evaluation of L.P.G.
• Opportunities in BPO,KPO,IT etc. sector.
• International expansion of Indian companies,
products
• Increase in the manufacturing and export
• It reduces the poverty from 40% to 25%.
• It increased the FDI.
• It increased the competition for domestic
companies.
ADVANTAGES & DISADVANTAGES OF
GLOBALIZATION
 Advantages Disadvantages
Increased free trade between nations Increased flow of skilled and non-skilled jobs
from developed to developing nations as
corporations seek out the cheapest labor

Increased liquidity of capital allowing Increased likelihood of economic disruptions

investors in developed nations to invest in in one nation effecting all nations
developing nations

Corporations have greater flexibility to Corporate influence of nation-states far

operate across borders exceeds that of civil society organizations
and average individuals

Global mass media ties the world together Threat that control of world media by a
handful of corporations will limit cultural
expression

Increased flow of communications allows Greater chance of reactions for globalization

vital information to be shared between being violent in an attempt to preserve
individuals and corporations around the cultural heritage
world
 Advantages Disadvantages
Greater ease and speed of transportation for Greater risk of diseases being transported
goods and people unintentionally between nations

Reduction of cultural barriers increases the Spread of a materialistic lifestyle and

global village effect attitude that sees consumption as the path
to prosperity

Spread of democratic ideals to developed International bodies like the World Trade
nations Organization infringe on national and
individual sovereignty

Reduction of likelihood of war between Increase in the chances of civil war within
developed nations developing countries and open war between
developing countries as they vie for
resources

Increases in environmental protection in Decreases in environmental integrity as

developed nations polluting corporations take advantage of
weak regulatory rules in developing
countries
 Globalization in India

• Globalization has played a major role in

export-led growth, leading to the enlargement
of the job market in India.
• One of the major forces of globalization in
India has been in the growth of outsourced IT
and business process outsourcing (BPO)
services
THANK YOU