The Effects of Globalization: A Comprehensive Analysis

Globalization essay Introduction to the topic. To start with, globalization means transcending national borders and cultures by spreading products, technology, information and jobs. Economically, it describes the interdependence of free trade - fostered nations around the globe. The motives of globalization are both idealistic and opportunistic, but it is clear that development of a global free market has benefited large Western companies. Its impact remains mixed in developed and emerging nations for workers, cultures and small businesses around the globe.

Companies gain a competitive advantage through globalization on multiple fronts. By producing overseas or in undeveloped countries, they can reduce operating costs. Due to the reduction or removal of tariffs, they can buy raw materials cheaper. Most of all, millions of new consumers have access to them.

History of Globalization

Globalization is not a new idea. In ancient times, traders travelled vast distances to buy rare and costly goods for sale in their homelands. In the 19th century, the Industrial Revolution brought advances in transport and communication that facilitated cross - border trade. Through fiscal policies and trade agreements, governments around the world have integrated a free market economic system over the last 20 years. The abolition or reduction of tariffs is the core of most trade agreements.

Features of Globalization

Globalization includes changes in social, cultural, political, and legal sectors:

• It leads to greater interaction between different populations in social terms.
• Culturally, globalization represents the exchange of ideas, values and artistic expression between cultures and even a trend towards the development of a single world culture.
• Globalization has paid political attention to intergovernmental organizations such as the United Nations and the World Trade Organization.
• Legally, globalization has changed the creation and enforcement of international law.

Factors That Led to Globalization

The first factor is technology. Rapid technological change has reduced the cost of transmitting and communicating information. Telecommunications facilities are used to contact each other around the world, to right away access information and communicate from remote areas.

The second factor is differences in tax systems. As the labour costs are less abroad and due to other factors many countries tried to change their tariff plans to attract foreign companies.In an attempt to win lucrative foreign investment projects, many countries have engaged in tax competition among themselves.

The third factor is growth strategies of multinational companies. More and more global companies and brands have invested significantly in international expansion in their pursuit of revenue and profit growth. This is particularly the case for companies with brands that have shown that they can succeed globally, especially in faster-growing economies fuelled by increasing numbers of middle-class consumers.

The last factor is containerisation. Due to containerization, bulk shipping and other efficiencies, ocean shipping costs have fallen. The lower unit cost of shipping products throughout the global economy helps to bring prices closer to those in export markets in the manufacturing country and makes markets globally more contestable.

Globalization on the Example of Indian Economy

India was the main driving force behind globalization. India's government made significant changes to its economic policy in 1991 by allowing foreign direct investment in the country. As a result, Indian industry globalization took place on a large scale. Economic expansion in India was observed in the 19th century as a result of major foreign exchange-led crises.

The liberalization of the national economy and India's enhanced incorporation into the global economy have helped to significantly increase the growth rate of gross domestic product (GDP), which has actually taken a good position on a global scale. The effects of globalisation, especially in the BPO, pharmaceutical, petroleum and manufacturing industries, are observed in the Indian industry as this process led to large amounts of foreign investments in the industry. As a result, they significantly boosted the Indian economy. This also helped reduce the country's unemployment and poverty levels.

The main forces of globalization in India have been the development of outsourced IT services and outsourcing business processes. Since many years, India has seen an increase in the number of trained professionals employed by domestic and international companies to serve customers in the United States and Europe. The foreign companies brought with them state-of - the-art technology and this made the Indian industry more technologically advanced. India's globalization has benefited companies that have ventured into the Indian market. Researchers recommend that India focus on five important areas in order to improve its economic status. These areas include technological entrepreneurship, new business openings for SMEs, the importance of quality management, new opportunities in rural areas and the privatization of financial institutions.

Many Indian companies have expanded their business in terms of export and import activities and have become famous worldwide, such as fast food, beverages and sportswear and clothing industries. Records show that agricultural exports account for approximately 13 to 18 percent of the country's total annual exports. In 2000-01, agricultural products valued at more than 6 million dollars were exported from the country, 23 percent of which alone contributed to marine products. In recent years, marine products have emerged as the country's largest contributor to total agricultural exports, accounting for more than one-fifth of total agricultural exports.

Globalization has accelerated food exports in India in the form of increased meat consumption, western fast food, soda and cool drinks, which may lead to a public health crisis. India's rich biodiversity has produced many healthy foods from local entities. However, MNCs ' marketing with large advertising campaigns leads people to use their products.

There is massive impacts seen in instructive area because of globalization, for example, education rate turn out to be high and Foreign Universities are working together with various Indian Universities. The Indian instructive framework faces difficulties of globalization through Information innovation and it offers chances to advance new standards moves in formative training. The qualification between formal, non-formal and casual training will disappear when move from mechanical society to data society happens. Globalization advances new apparatuses and strategies, for example, E-learning, Flexible learning, Distance Education Programs and Overseas preparing.

It is seen in current Indian culture that through globalization, ladies have increased certain open doors for occupation alternatives and to perceive ladies' rights as a piece of the human rights. Their strengthening has given significant chances and potential outcomes of enhancing work conditions through worldwide solidarity and co-appointment. It is discovered that the development of PC and different advances empowered ladies with better pursued, flex timings, and ability to arrange their job and status in home and at corporate dimension.

There are some negative effects of globalization, for example, this procedure made divergence among rustic and urban Indian joblessness, development of ghetto capitals and danger of fear based oppressor exercises. Globalization expanded challenge in the Indian market between the outside organizations and household organizations. With the remote products being superior to the Indian merchandise, the shopper wanted to purchase the outside products.

Some segment of individuals in India that are poor don't get advantage of globalization. There is an expanded hole among rich and poor that lead to some criminal exercises. Moral obligation of business has been decreased. Another real negative impact of globalization in India is that adolescents of India leaving their examinations extremely early and joining Call focuses to win quick cash diminishing their public activity in the wake of getting habituated with repetitive work. There is an expansion of each every day usable items. This has adverse effects on social perspective. The establishment of marriage is separating at quick rate. There are more individuals moving toward separation courts as opposed to keeping up conjugal life. Globalization has extensive effect on the religious circumstance of India. Globalization has realized raising a populace who is sceptic and agnostic. Individuals visiting spots of love are decreasing with time. Globalization has diminished patriotism in nation.

Globalization in setting of status of ladies involves the transfer of the stereotypic example of obligations of the ladies like raising and minding the youngsters to the back ground and taking up the different expanded occupation and in this manner making their living very dynamic and alive. Globalization benefits the timetable rank individuals in advancing social homogeneity in the method for relaxing of the thoughts of contamination and virtue and destruction of unapproachability thus numerous socio-social and financial incapacities related with them. Globalization of products has created energy in India for western brand names.

Conclusion

For example in Indian situation, globalization built up a purchaser credit society. Today, individuals can purchase merchandise and ventures regardless of whether they don't have adequate money. Globalization also resulted in increasing jobs. But globalization also has some drawbacks like mass media communication. Many of TV channels and news papers are being biased and aren’t fully focused on realistic issues. Instead they are being controlled by government. It also leads to close the local businesses in many sectors. There are many advantages as well as disadvantages, but in my opinion without today’s technology or western products many of the works wouldn’t be easily done or might even be impossible in some cases. So instead of concerning more about disadvantages we have to develop our country by focusing on advantages we have.