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DIBRUGARH UNIVERSITY

CENTRE FOR MANAGEMENT STUDIES

Assignment On

Course Title: INTERNATIONAL BUSINESS

Submitted by
Ivraj Harlalka
Roll No. 59
MBA 4th Semester, 2017 Batch (FT)

Date of submission-20/02/2019
Q: Has globalisation done more harm then let to benefit for your country? Discuss
the trade openness of your country put forward your arguments?

Ans: As seen globalization have two sides the positive and the negative. On one
hand in our India we have people with education, skill and wealth who have
benefited from the globalization, on the other hand, there are the uneducated,
less skilled people who have not benefited from it.

Some harm done by globalization are as follows:

1. Rising Competition – With the foreign trade policies it allows the import of
electronic goods at a very cheap cost from neighboring countries thus from
this the local manufactures or producers of electronic goods are not able to
meet the challenges. MNCs flooded the market with quality products at a
cheap price. Example – Xiaomi, Samsung this MNCs has taken over the
market completely for Micromax, Spice, Lava a Indian producer.
2. In agricultural sector with globalization new technologies are coming which
are replacing the nature manure by synthetic fertilizers which are harmful.
3. Child Labor – Despite prohibition of child labour by the Indian constitution,
over 60 to a 115 million children workers are agricultural laborers, urban
children work in manufacturing, processing, repairing. Globalization most
directly exploits an estimated 3,00,000 lndian children’s.
4. Indian culture, customs and traditions have seen a decline in todays
generation.

Some advantages of globalisation in India:

1. Provides greater number of jobs with rise in MNC


2. Development in rural areas.
3. Improvement in technology.
4. Improved healthcare.
5. More choices to consumers – Now consumers can go for a Bajaj 2 wheeler
a Indian Co or Honda 2 wheeler.an MNC.

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Trade openness in India: There are many reasons for a country to engage in
international trade but one of the most important reasons is a country can get
goods from abroad that are cheaper as well as of higher quality than the home
made goods and even for the gains which they get from the trade.

 Walmart recently announced its acquisition of flipkart, making it the largest


e-commerce acquition in the world. This would have result in the creation
of more jobs, and most of these in the formal sector, as infrastructure is
setup. The storage structures , warehouse and trasport of goods would
have require human resources. This would have also encourage a diversity
of suppliers, who can potentially tap into global supply chain. But with the
recent changes in the Indian FDI policies for e-commerce firms its hinted
that walmart may quit flipkart as the new foreign direct investment which
came to effect would have lower profitability in the long run.
 India has received massive FDI worth USD 239 Billion in the last 5 years.
 The Government has relaxed foreign investments norms in several sectors
like brand retail.
 The main sectors that receive the maximum foreign inflows includes
computer software, hardware, telecommunications, automobile.

FDI is important as India would require huge investments in the coming years to
overhaul its infrastructure sector to boost growth

Healthy growth in foreign inflows helps maintain balance of payments and value
of the rupee.

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