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INTRODUCTION

Globalization means the coming together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society. Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest. The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom. Globalization has also played a major role in generating employment opportunities in India. After liberalization in the 1990s, the scenario of employment in India has witnessed a phenomenal change. Cities like Bangalore, Delhi, Mumbai and Chennai provide employment to a chunk of the Indian population since it is in these cities only that most foreign companies have set up their operations. Globalization (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization as a spatial integration in the sphere of social relations when he said Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice versa. Globalization generally means integrating economy of our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall

growth of the economy. It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors.

GLOBALIZATION AND ITS MEANING


Broadly speaking, the term globalization means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions cultural, social, political and economic. In fact, some people fear cultural and social integration even more than economic integration. The fear of cultural hegemony haunts many. Limiting ourselves to economic integration, one can see this happen through the three channels of (a) trade in goods and services, (b) movement of capital and (c) flow of finance. Besides, there is also the channel through movement of people. International Monetary Fund (IMF) defines as the growing economic interdependence of countries worldwide through increasing volume and variety of cross- border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology. In the words of Jagdish Bhagwati Economic Globalization constitutes integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals),short term capital flows, international flows of workers and humanity generally, and flows of technology .In a broad sense, the term globalization refers to integration of Economies and societies through cross country flows of information, ideas, technologies, goods, Services, capital, finance and people.

Definition
Globalization is an elimination of barriers to trade, communication, and cultural exchange. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations.

HISTORICAL DEVELOPMENT
Globalization has been a historical process with ebbs and flows. During the Pre-World War I period of 1870 to 1914, there was rapid integration of the economies in terms of trade flows, movement of capital and migration of people. The growth of globalization was mainly led by the technological forces in the fields of transport and communication. There were less barriers to flow of trade and people across the geographical boundaries. Indeed there were no passports and visa requirements and very few non-tariff barriers and restrictions on fund flows. The pace of globalization, however, decelerated between the First and the Second World War. The inter-war period witnessed the erection of various barriers to restrict free movement of goods and services. Most economies thought that they could thrive better under high protective walls. After World War II, all the leading countries resolved not to repeat the mistakes they had committed previously by opting for isolation. Although after 1945, there was a drive to increased integration, it took a long time to reach the PreWorld War I level. In terms of percentage of exports and imports to total output, the US could reach the pre-World War level of 11 per cent only around 1970. Most of the developing countries which gained Independence from the colonial rule in the immediate Post-World War II period followed an import substitution industrialization regime. The Soviet bloc countries were also shielded from the process of global economic integration. However, times have changed. In the last two decades, the process of globalization has proceeded with greater vigour. The former Soviet bloc countries are getting integrated with the global economy. More and more developing countries are turning towards outward oriented policy of growth. Yet, studies point out that trade and capital markets are no more globalized today than they were at the end of the 19th century. Nevertheless, there are more concerns about globalization now than before because of the nature and speed of transformation. What is striking in the current episode is not only the rapid pace but also the enormous impact of new information technologies on market integration, efficiency and industrial organization. Globalization of financial markets has far outpaced the integration of product markets.

GLOBALIZATION IN INDIA
Globalization refers to situation marked by substantial degree of economic activities carried out across boundaries of different countries or nations. The nature of economic activities present in the kind globalization that is existing today, goes much beyond the simple import and export trading activities. Globalization today involves manufacturing as well as sourcing activities being carried out in multiple countries to manufacture products that may be distributed in many countries not involved in sourcing or manufacturing countries. Globalization also involves trans-national border ownership and entrepreneurship. Businesses and investors from one country may own and operate business, or provide various types of collaborative support in multiple countries. One good example of globalization is provided by Toyota. It is a a company that originated in Japan, but now owns and operates subsidiary and joint venture companies in many different countries. It operated assembly plants in many different country, and typically plant in each country sources components from multiple countries, many of which may have no Toyota assembly plants. The Toyota cars manufactured are then sold throughout the world.

FEATURES
The features of globalization may be discussed as follows: 1. It means free access to the markets in the world without any physical (quota) or fiscal (tariff) or any other governments) restriction. Hence, global consumers emerge demanding high quality products and more value for their money without any restrictions like parochial, regional or national consideration. 2. Globally standardized products need be marketed ail over the world. There are already many such products having world market. It includes the "lead" products in a region taking care of dominant needs of that region. 3. Globalization requires resources like raw materials, finance and technology. Free access to quality raw materials, latest technology and cheap finance are important characteristics of this process at less cost. 4. In globalization. Free mobility of managerial personnel and entrepreneurs result into mergers, takeovers and structural regrouping in countries across the globe.

NEED FOR GLOBALISATION


Indias experience in globalization could be divided in to two phases. The first phase of economic liberalization began in 1981, under pressure from the International Monetary Fund and the World Bank. During this phase, India received the U.S. $5 billion loan that was conditional on an adjustment program me from the IMF. The second phase of globalization began in 1991Where the economic measures initiated were based on the World Banks Structural Adjustment Program me (SAP) designed to restructure the economy However, India sentry into globalization is relatively later than most of other third world countries After independence, India followed the policy of planned growth and for this it pursued conservative policies. The public sector was given dominant position and was made the main instrument for growth. The fiscal policy was framed in a way that it mobilized resources from the private sector to finance development programmed and public investment in infrastructure. Similarly monetary policy sought to regulate financial flowsin accordance with the needs of the industrial sector and to keep the inflation under control. Foreign trade policy was formulated to protect domestic industry and keep trade balance in manageable limits. These conservative policies continued for decades, but it was noticed as early as in 1980sthat there was: Excess of consumption and expenditure over revenue resulting in heavy government borrowings; Growing inefficiency in the use of resources; Over protection to industry; Mismanagement of firms and the economy; Mounting losses of public sector enterprises; Various distortions like poor technological development and shortage of foreign exchange; and imprudent borrowings from abroad and mismanagement of foreign exchange reserves.

Measures of Globalization
1. Devaluation: The first initiative towards globalization had been taken the moment there was an announcement of devaluating the Indian currency by a hoping 18-19% against all the major global currencies. This was a major initiative in the international foreign exchange arena. The Balance of payment crisis could also be resolved by this measure.

2. Disinvestment: The core elements of globalization are privatization and liberalization. Under the privatization scheme, bulk of the public sector undertakings have been/ and are still being sold to the private sector. Thus the concept of PPP (public private partnership) came up.

3. Allowing Foreign Direct Investment (FDI): Allowing FDI inflows is a major step of globalization. The foreign investment regime has been quite transparent and thus the economy is getting boosted up. Various sectors were opened up for liberalizing the FDI regime.

Effects of Globalization
According to economists, there are a lot of global events connected with globalization and integration. It is easy to identify the changes brought by globalization. 1. Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically. 2. Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology. 3. Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established. An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profits. They are able to do it because they have already penetrated the local markets. The rise of multinational corporations began after World War II. Large companies refer to the countries where their subsidiaries reside as host countries. Globalization has a lot to do with the rise of multinational corporations. 4. Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB). 5. Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment. 6. Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that countries like India and the Philippines can offer

7. Civil Society. An important trend in globalization is the increasing influence and broadening scope of the global civil society. Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country that are established and run by citizens. The family, being an institution, is part of the society. In globalization, global civil society refers to organizations that advocate certain issue or cause. There are NGOs that support women's rights and there are those that promote environment preservation. These organizations don't work to counter government policies, but rather to establish policies that are beneficial to all. Both the government and NGOs have the same goal of serving the people. The spread of globalization led to greater influence of NGOs especially in areas of great concern like human rights, the environment, children, and workers. Together with the growing influence of NGOs is the increasing power of multinational corporations. If the trend continues, globalization will pave the way for the realization of the full potential of these two important global actors.

CONCLUSION
India gained highly from the LPG model as its GDP increased to 9.7% in 20072008. In respect of market capitalization, India ranks fourth in the world. But even after globalization, condition of agriculture has not improved. The share of agriculture in the GDP is only 17%. The number of landless families has increased and farmers are still committing suicide. But seeing the positive effects of globalization, it can be said that very soon India will overcome these hurdles too and march strongly on its path of development. The lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity - while avoiding the pitfalls. For over a century the United States has been the largest economy in the world but major developments have taken place in the world Economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants- India and China. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century. India, which is now the fourth largest economy in terms of purchasing power parity, may overtake Japan and become third major economic power within 10 years. To conclude we can say that the modernization that we see around us in our daily life is a contribution of Globalization. Globalization has both positive and as well as negative impacts on various sectors of Indian Economy. So Globalization has taken us a long way from 1991 which has resultant in the advancement our country.

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