1. factors that have led to globalization in the 21st century 2. its effects on indian farming sector
3 effect on indian industry
4 WTO and globalization
5 globalization and the future of indian economy
1. The main factors that lead to globalisation in the 21st century are: i.-- the gross failure of all closed, command communist and socialist economies to bring in economic properity, better quality life and health and education to the common man, resulting in opening up of China, disintegration of the Soviet Union, merger of two Germanies, the international bankrptcy of India in 1990-91, ii-- the rapid growth of telecommunications, computer and internet technologies, iii. the benefits derived from GATT negotiations
iv. the falling prices of new technology goods available to the poorest man, thanks to multinationas\al companies v. the great benefits that globalisation in the 20th century has brought in as described below: Globalization is a buzz word that refers to the trend for people, firms and governments around the world to become increasingly dependent on and integrated with each other. This can be a source of tremendous opportunity, as new markets, workers, business partners, goods and services and jobs become available, but also of competitive threat, which may undermine economic activities that were viable before globalisation. Usually, the term is synonymous with international integration, the spread of free markets and policies of liberalisation and free trade. The process is not the result simply of economic forces. The decisions of policymakers have also played an important part, although not all governments have embraced the change warmly. The driving force of globalisation has been multinational companies, which since the 1970s have constantly, and often successfully, lobbied governments to make it easier for them to put their skills and capital to work in previously protected national markets. Firms enjoying some national protection, and their (often unionised) workers, have been some of the main opponents of globalisation, along with advocates of fair trade. Despite all the talk of globalisation during the 1990s, in some respects the world economy was more integrated in the late 19th century. The labour market was certainly more global. For example, the flow of people out of Europe, 300,000 people a year in the mid-19th century, reached 1m a year after 1900. Now governments are much fussier about immigration, and people are no longer free to migrate as they wish. As for capital markets, only in the 1990s did international capital flows, relative to the size of the world economy, recover to the levels of the few decades before the first world war. This early globalised economy did not last for long, however. Between the two world wars, the flows of trade, capital and people collapsed to a trickle. Even before the first world war, governments started to put up the shutters against migrants and imports. Could such a backlash against globalisation happen again? There are numerous advantages in the shift to a global economy including the possibility to increase benefits from economies of scale. The breaking down of global barriers allows companies to benefit from the largest and cheapest workforces, raw materials, and technology. For example, “many North American publishers actually write and produce much of their software in countries such as India.” Other advantages that companies benefit from include: the opportunity for smaller companies to quickly expand globally, having more choices when recruiting a workforce and the opportunity to target a larger customer base (which translates to greater earning potential). It is obvious how global economy also helps in promoting international cooperation and peace for the nations involved in the international trade by increasing mutual-dependence. For instance, India and Pakistan are often in dispute over land territory...