THE DEFINITION The International Monetary Fund defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. Meanwhile, The International Forum on Globalization defines it as the present worldwide drive toward a globalized economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments. While notable critical theorists, such as Immanuel Wallerstein, emphasize that globalization cannot be understood separately from the historical development of the capitalist world-system the different definitions highlight the ensuing debate of the roles and relationships of government, corporations, and the individual in maximizing social welfare within the globalization paradigms. Nonetheless, it is clear that globalization has economic, political, cultural, and technological aspects that may be closely intertwined. Given that these aspects are key to an individual's quality of life, the social benefits and costs brought upon them by globalization generate strong debate. It is easy to perceive the increase in the flow of trade, especially intra-firm transactions by multinational corporations, and the even faster growth of global capital markets that are obvious signs of globalization. The globalization of production is the most visible evidence that can be detected from the growth of manufacturing FDI, and even more significant is the expansion of the international capital market. When focusing on global economy, globalization has two components: finance and production. Globalization of these factors appears in the form of the increased international mobility of capital and the growing incidence of mergers and acquisitions and strategic alliances. And for both finance and production, markets have facilitated the globalization process, while markets themselves also became globalized.
GLOBALISATION IMPACT ON INDIA
Globalization in relation to India has been a two way process. Global forces have had a considerable impact on India at all levels of its life. They are penetrating its economy and reshaping its structure and mode of operation. They are forcing India to redefine its place in the world and its relation to its neighbors and the west. India's educational and cultural life, TV and print media, and its perception of itself and the world are also undergoing profound changes. Not surprisingly, India today is quite different from what it was barely ten years ago, and it is not easy to predict how it will progress during the next few years.
India has not been a passive recipient of global impact. Both directly and through its diaspora, it has increasingly become a significant global presence. India's literature, arts, films, religions, food, textiles, fashions and music are now an integral part of life in the west. Its doctors, IT specialists, computer scientists, small and large industrialists, managers and engineers are present in the west in large numbers and have made a very considerable impact. Indeed, they are admired for their skills and hard work and are much sought after.
Consider Globalization and Indian industry. In the seventies, India was just emerging from the first stage. After 30 years from then, it has crossed second stage and going into the third one. Year 2003 was pivotal as it saw manifestation of India's global aspiration. The number as well as size of the foreign targets showed steep rise. Close to 50 overseas acquisitions, amounting $1.8 billion took place last year, which was only $0.21 billion in 2002. The increase in average deal size is from $7.5 million in 2002 to $36.5 million in 2003. India has adopted domestic policies and institutions that have enabled people to take advantage of global markets and have...