UNIT: 5

Globalization:The term globalization can be used in different contexts. The general usages of the term
Globalization can be as follows:

i. Interactions and interdependence among countries.

ii. Integration of world economy.

iii. Deterritorisation.

Globalization can be broadly defined as follows:

It refers to a process whereby there are social, cultural, technological exchanges across the border.

The term Globalization was first coined in 1980s. But even before this there were interactions among
nations. But in the modern days Globalization has touched all spheres of life such as economy,
education. Technology, cultural phenomenon, social aspects etc. The term “global village” is also
frequently used to highlight the significance of globalization. This term signifies that revolution in
electronic communication would unite the world.

Undoubtedly, it can be accepted that globalization is not only the present trend but also future world
order.

Effect of Globalization on India:Globalization has its impact on India which is a developing country.
The impact of globalization can be analysed as follows:

1. Access to Technology:Globalization has drastically, improved the access to technology. Internet

facility has enabled India to gain access to knowledge and services from around the world. Use of
Mobile telephone has revolution used communication with other countries.

2. Growth of international trade:Tariff barriers have been removed which has resulted in the growth
of trade among nations. Global trade has been facilitated by GATT, WTO etc.

3. Increase in production:Globalization has resulted in increase in the production of a variety of goods.

MNCs have established manufacturing plants all over the world.

4. Employment opportunities:Establishment of MNCs have resulted in the increase of employment

opportunities.

5. Free flow of foreign capital:Globalization has encouraged free flow of capital which has improved
the economy of developing countries to some extent. It has increased the capital formation.

Negative effect of globalization:

Globalization is not free from negative effects. They can be summed up as follows:

1. Inequalities within countries:Globalisation has increased inequalities among the countries. Some of
the policies of Globalization (liberalisation, WTO policies etc.) are more beneficial to developed
countries. The countries which have adopted the free trade agenda have become highly successful. E.g.:
China is a classic example of success of globalization. But a country like India is not able to overcome
the problem.
2. Financial Instability:As a consequence of globalization there is free flow of foreign capital poured
into developing countries. But the economy is subject to constant fluctuations. On account of variations
in the flow of foreign capital.

3. Impact on workers:Globalization has opened up employment opportunities. But there is no job

security for employees. The nature of work has created new pressures on workers. Workers are not
permitted to organise trade unions.

4. Impact on farmers:Indian farmers are facing a lot of threat from global markets. They are facing a
serious competition from powerful agricultural industries quite often cheaply produced agro products in
developed countries are being dumped into India.

5. Impact on Environment:Globalization has led to 50% rise in the volume of world trade. Mass
movement of goods across the world has resulted in gas emission. Some of the projects financed by
World Bank are potentially devastating to ecological balance. E.g.: Extensive import or export of meat.

6. Domination by MNCs:MNCs are the driving force behind globalization. They are in a position to
dictate powers. Multinational companies are emerging as growing corporate power. They are exploiting
the cheap labour and natural resources of the host countries.

7. Threat to national sovereignty:Globalizations results in shift of economic power from independent

countries to international organisations, like WTO United Nations etc. The sovereignty of the elected
governments are naturally undermined, as the policies are formulated in favour of globalization. Thus
globalization has its own positive and negative consequences. According to Peter F Drucker
Globalization for better or worse has changed the way the world does business. It is unstoppable. Thus
Globalization is inevitable, but India should acquire global competitiveness in all fields.

____________________________________________________________________________________

Liberalisation:It is an immediate effect of globalization. Liberalisation is commonly known as free

trade. It implies removal of restrictions and barriers to free trade. India has taken many efforts for
liberalisation which are as follows:

Objectives of the new economic policy.

i. To achieve higher economic growth rate.

ii. To reduce inflation

iii. To rebuild foreign exchange reserves.

FEMA:

Foreign exchange Regulation Act 1973 was repealed and Foreign exchange Management Act was
passed. The enactment has incorporated clauses which have facilitated easy entry of MNCs.

i. Joint ventures with foreign companies. E.g.: TVS Suzuki.

ii. Reduction of import tariffs.

iii. Removal of export subsidies.

iv. Full convertibility of Rupee on current account.

v. Encouraging foreign direct investments.

The effect of liberalisation is that the companies of developing countries are facing a tough competition
from powerful corporations of developed countries.

The local communities are exploited by multinational companies on account of removal of regulations
governing the activities of MNCs.

____________________________________________________________________________________

Privatisation:In the event of globalization privatisation has become an order of the day. Privatisation
can be defined as the transfer of ownership and control of public sector units to private individuals or
companies. It has become inevitable as a result of structural adjustment programmes imposed by IMF.

Objectives of Privatisation:

To strengthen the private sectors.

Government to concentrate on areas like education and infrastructure.

In the event of globalization the government felt that increasing inefficiency on the part of public sectors
would not help in achieving global standards. Hence a decision was taken to privatise the Public Sectors.

Causes of Inefficiency of Public Sectors:

i. Bureaucratic administration

ii. Out dated Technology

iii. Corruption

iv. Lack of accountability.

v. Domination of trade unions

vi. Political interference.

vii. Lack of proper marketing activities.

Privatisation has its own advantages and disadvantages Viz:

Advantages:

i. Efficiency

ii. Absence of political interference

iii. Quality service.

iv. Systematic marketing

v. Use of modern Technology

vi. Accountability

vii. Creation of competitive environment.

viii. Innovations

ix. Research and development

x. Optimum utilisation of resources

xi. Infra structure.

However, privatisation suffers from the following defects.

i. Exploitation of labour.

ii. Abuse of powers by executives.

iii. Unequal distribution of wealth and income.

iv. Lack of job security for employees.

Privatisation has become inevitable in the present scenario. But some control should be exercised by the
government over private sectors.

____________________________________________________________________________________

Problems of Industry-Technology:In general, the challenges faced by the Technology industry relate
to growth and/or a recovery in sales after several years of harsh cost adjustments due, in some cases, to
dramatic reductions in turnover. Industry concentration and consolidation is likely to increase in order
to obtain cost saving synergies leading to improved profitability, the main players being corporate
investors.

An increase is also expected in the future, particularly in medium-size transactions, since growth in
venture capital activities is envisaged that will make the market more dynamic.

The current situation favors the search for and identification of opportunities having attractive
values that allow the consolidation of the industry.

Information security in this environment must not only not be questioned but must be prioritized,
because new risks such as internal fraud, information leaks or regulatory infringement are becoming
more prevalent and the likelihood of occurrence is rising.

The risk of the information being disclosed without due consent or authorization increases
considerably in the technology industry, where business is based mainly on electronic
communications between people through communication networks. Information security is today a
process that bolsters and protects an organisation’s assets and services. In these circumstances,
particular attention must be paid to and work must continue on information security for these assets
and services.

__________________________________________________________________________________
 Waste disposal management : Waste management is the "generation, prevention, characterization,
monitoring, treatment, handling, reuse and residual disposition of solid wastes".[1] There are various
types of solid waste including municipal (residential, institutional, commercial), agricultural, and special
(health care, household hazardous wastes, sewage sludge).[1] The term usually relates to materials
produced by human activity, and the process is generally undertaken to reduce their effect on health,
the environment or aesthetics.

Issues relating to waste management include:

Generation of waste

Waste minimization

Waste removal

Waste transportation

Waste treatment

Recycling and reuse

Storage, collection, transport, and transfer

Treatment

Landfill disposal

Environmental considerations

Financial and marketing aspects

Policy and regulation

Education and training

Planning and implementation.

Waste handeling system

Vacuum collection in which waste is transported from the home or commercial premises by vacuum
along small bore tubes. Systems are in use in Europe and North America

Curbside collection is the most common method of disposal in most European countries, Canada,New
Zealand and many other parts of the developed world in which waste is collected at regular intervals by
specialised trucks. This is often associated with curb-side waste segregation. In rural areas waste may
need to be taken to a transfer station. Waste collected is then transported to a regional landfill.

In many areas, pyrolysis is used to dispose of some wastes including tires, a process that can produce
recovered fuels, steel and heat. In some cases tires can provide the feedstock for cement manufacture.
Such systems are used in USA, California, Australia, Greece, Mexico, the United Kingdom and in
Israel. The RESEM pyrolysis plant that has been operational at Texas USA since December 2011, and
processes up to 60 tons per day.[23]
In some areas such as Taipei, the city government charges its households and industries for the volume
of rubbish they produce. Waste will only be collected by the city council if waste is disposed in
government issued rubbish bags. This policy has successfully reduced the amount of waste the city
produces and increased the recycling rate. A similar system operates in New Zealand where waste must
be packed in specially identified bags.

In some jurisdictions unsegregated waste is collected at the curb-side or from waste transfer stations and
then sorted into recyclables and unusable waste. Such systems are capable of sorting large volumes of
solid waste, salvaging recyclables, and turning the rest into bio-gas and soil conditioner.

The City's "Pay-As-You-Throw" system charges customers by the volume of landfill-bound materials,
which provides a financial incentive to separate recyclables and compostables from other discards.
The City's Department of the Environment's Zero Waste Program has led the City to achieve 80%
diversion, the highest diversion rate in North America.

Industrial Law & Disputes

Industrial Law is the branch of Law that deals with legal aspects of three different but inter-related set
of entities - Industries, Labor and Governmental agencies.

Governments across the world have been promoting setting up of industries but at the same time are
controlling them actively. They always have given importance to Labor-welfare and needless to say,
many laws are brought to mitigate, address and solve industry-labor disputes in the most amicable
manner. At the same time, erring industries are always punished.

Modern Industrial Jurisprudence changed the concept of master-servant. Under the modern sense, one
who invests capital is no more than a master and one who puts in labour is no more a servant.

Types of laws related that fall under Industrial Law

Laws related to Industrial Relations

Laws related to Wages

Laws related to Working Hours, Conditions of Services and Employment

Laws related to Equality and Empowerment of Women

Laws related to Deprived and Disadvantaged Sections of the Society

Laws related to Social Security

Laws related to Labour Welfare

Laws related to Employment & Training

Other Laws

____________________________________________________________________________________
Industrial Dispute in India

According to Sec. 2 of the Industrial Dispute Act, 1947, “Industrial dispute means any dispute or
difference between employers and employers or between employers and workmen or between workmen
and workmen, which is connected with the employment or non-employment or the terms of employment
or with the conditions of labour of any person” Industrial disputes are of symptoms of industrial unrest
in the same way that boils are symptoms of a disordered body.

The various disputes are below:-

Strike: “Strike means a cessation of work by a body of persons employed in any industry acting in
combination, or a concerted refusal or a refusal under a common understanding of any number of
persons who are or have been so employed, to continue to work or to accept employment.”

Lock-out: Lock-out is declared by the employers to put pressure on their workers. It is an act on the part
of the employers to close down the place of work until the workers agree to resume the work on the
terms and conditions specified by the employers.

Gherao: The term ‘Gherao’ denotes a collective action initiated by a group of workers under which
members of the management of an industrial establishment are prohibited from leaving the business or
residential premises by the workers who block their exit through human barricade.