Globalization and Indian Economy

Topics: Globalization, International trade, World Trade Organization Pages: 7 (1714 words) Published: December 22, 2012
Globalization and Indian Economy - Presentation Transcript
2. Globalization
* Globalization has come to be a principal characteristic feature of the new millennium and it has become an inescapable reality in today's society. * No community and society can remain isolated from the forces of globalization 3. What is globalization

* Globalization is the increasing integration of economies and societies around the world, transcending the boundaries of the nation state, particularly through international trade and the flow of capital, ideas and people, the transfer of culture and technology, and the development of transnational regulations 4. Contd

* Globalization is caused by four fundamental forms of capital movement throughout the global economy. The four important capital flows are:- * Human Capital
* Financial Capital
* Resource Capital
* Power Capital
5. Definition of globalization
* Tom G. Palmer of Cato Institute defines "globalization" as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.“ * Noam Chomsky argues that the word globalization is also used, in a doctrinal sense, to describe the neo-liberal form of economic globalization. 6. History

* The term "globalization" has been used by economists since the 1980s although it was used in social sciences in the 1960s; however, its concepts did not become popular until the latter half of the 1980s and 1990s * The earliest written theoretical concepts of globalization were penned by an American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897 7. Contd

* The 19 th century is sometimes called “The First Era of Globalization”. It was a period characterized by rapid growth in international trade and investment. The “First Era of Globalization” began to break down at the end of the 20 th century with the first World War and later collapsed during the gold standard crisis in the late 1920’s and early 1930’s 8. Modern globalization

* It is the actual period in which globalization took another phase, it worked towards promotion of free trade * Globalization has been facilitated by advances in technology which have reduced the costs of trade and trade negotiation rounds, originally under the auspices of the General Agreement on Tariffs and Trade (GATT) * Barriers to international trade have been considerably lowered through international agreements such as GATT 9. Pro-globalization

* Supporters of free trade claim that it increases economic prosperity as well as opportunity, especially among developing nations, enhances civil liberties and leads to a more efficient allocation of resources. Economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources, with all countries involved in the trade benefiting 10. Contd

* Globalization leads to lower prices, more employment, higher output and higher standard of living for those in developing countries * Income equality
* Life expectancy
* Feminism
* Decreased percentage of children in labour force * Increasing use of electric powers, cars, radios and telephones per capita 11. Anti-globalization
* Anti-globalization is a term used to describe the political stance of people and groups who oppose the neoliberal version of globalization . * Anti-globalization may occur in order to maintain barriers to the international transfer of people, goods and beliefs, particularly free market deregulation, encouraged by organizations such as the IMF or the WTO 12. Contd

* Skeptics...
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