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Advantages:

Discuss the advantages and disadvantages of globalization to small scale industries in India.

Increased free trade between nations

Increased liquidity of capital allowing investors in developed nations to invest in developing

nations

Corporations have greater flexibility to operate across borders

Global mass media ties the world together

Increased flow of communications allows vital information to be shared between individuals

and corporations around the world

Greater ease and speed of transportation for goods and people

Reduction of cultural barriers increases the global village effect

Spread of democratic ideals to developed nations

Greater interdependence of nation-states

Reduction of likelihood of war between developed nations

Increases in environmental protection in developed nations

Disadvantages^

Increased flow of skilled and non-skilled jobs from developed to developing nations as
corporations seek out the cheapest labor

rV Increased likelihood of economic disruptions in one nation effecting all nations

 rV Corporate influence of nation-states far exceeds that of civil society organizations and
average individuals
rV phreat that control of world media by a handful of corporations will limit cultural
expression
rV Greater chance of reactions for globalization being violent in an attempt to preserve
cultural heritage
rV Greater risk of diseases being transported unintentionally between nations
rV Spread of a materialistic lifestyle and attitude that sees consumption as the path to
prosperity
rV International bodies like the World prade Organization infringe on national and
individual sovereignty
rV Increase in the chances of civil war within developing countries and open war
between developing countries as they vie for resources
rV Decreases in environmental integrity as polluting corporations take advantage of weak
regulatory rules in developing countries

FACpORS FAVOURING GLOBALISApION

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India has a very broad resources and industrial base which can support a variety of business.

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Many of the established industries are planning to go international in a big way. Added to this
is the considerable growth of new and dynamic entrepreneurs who could make a significant
contribution to the globalization of India business.

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DEFINIpION OF LIBERALIZApION

Removal of or reduction in the trade practices that thwart free flow of goods and services
from one nation to another. It includes dismantling of tariff (such as duties, surcharges, and
export subsidies) as well as non-tariff barriers (such as licensing regulations, quotas, and
arbitrary standards
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As we know, every business operates within a society.

It uses the resources of the society and depends on the society for its functioning. phis
creates an obligation on the part of business to look after the welfare of society. So all the
activities of the business should be such that they will not harm, rather they will protect and
contribute to the interests of the society. Social responsibility of business refers to all such
duties and obligations of business directed towards the welfare of society. phese duties can
be a part of the routine functions of carrying on business activity or they may be an additional
function of carrying out welfare activity.

i.Public Image - phe activities of business towards the welfare of the society earn goodwill
and reputation for the business. phe earnings of business also depend upon the public
image of its activities. People prefer to buy products of a company that engages itself
in various social welfare programmes. Again, good public image also attracts honest
and competent employees to work with such employers.
ii. Government Regulation - po avoid government regulations businessmen should
discharge their duties voluntarily. For example, if any business firm pollutes the
environment it will naturally come under strict government regulation, which may
ultimately force the firm to close down its business. Instead, the business firm should
engage itself in maintaining a pollution free environment.
iii. Survival and Growth -Every business is a part of the society. So for its survival and
growth, support from the society is very much essential. Business utilizes the available
resources like power, water, land, roads, etc. of the society. So it should be the
responsibility of every business to spend a part of its profit for the welfare of the
society.
iv. Employee satisfaction - Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation, transportation,
education and training. phe employers should try to fulfill all the expectation of the
employees because employee satisfaction is directly related to productivity and it is
also required for the long-term prosperity of the organisation. For example, if business
spends money on training of the employees, it will have more efficient people to work
and thus, earn more profit.
v. Consumer Awareness - Now-a-days consumers have become very conscious about
their rights. phey protest against the supply of inferior and harmful products by forming
different groups. phis has made it obligatory for the business to protect the interest of
the consumers by providing quality products at the most competitive price.