Sunday, 14 February 2016

The Impact of Globalization in India

The term globalization is derived from the word globalize, which refers to the emergence of an international network of economic systems. Globalization is a process in which two or more countries interconnect their view, products, ideas and mutual sharing and other aspects of culture. The process updates the information among people. Advancement in transportation, telecommunication systems, infrastructures are the major factors of globalization. Advancement in technology from broadband telephone lines to wireless mobile phones, B&W bulky television to coloured LED’s, all are impacts of globalization.

Large-scale globalization began in the 19th century. In the late 19th century and early 20th century, the connectivity of the world's economies and cultures grew very quickly. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: 
  • Trade and Transactions
  • Capital and investment movements
  • Migration and movement of people
  • The dissemination of knowledge.

Well known MNCs including fast food companies such as McDonald's, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony have entered global markets. Most of the largest corporations operate in multiple national markets because of Globalization.

In India, globalization has both positive and negative impacts,

The positive impacts of globalization are:
  • Benefit for consumer: Globalization has led to a greater competition among the companies. The consumers now, have a wide variety of choices. Consumers now, enjoy improved quality and lower prices for several products.
  • High paid jobs: Because of globalization, many MNC’s have raised their investments in India. This has resulted in, high paid jobs for thousands of people in India and enjoy much higher standards of living, which was not possible earlier.
  • Foreign Collaboration: Many Indian Companies have gained from successful collaborations with foreign companies.
  • Increased jobs: Globalization has also created new opportunities for Indian companies providing services, particularly in IT field. Many services like data entry, administrative tasks are now being cheaply done in India. This has generated thousands of jobs for people in India.
  • Newer Technology: Top Companies in India have, invested in new technologies for production and raised their production standards.
  • Work Culture: Globalization has also raised the standards of work culture in Indian companies.

The Negative Side:

There are some negative impacts of globalization in India. For small companies, globalization has pose some major challenges.
  • Rising Competition: Foreign trade policies have allowed the import of electronic goods, at a very cheap cost. The local manufacturers, could not produce goods at this price and as a result, many of them have shut their plants.
  • Uncertain Employment: The manufacturers are always looking for cheap labour, which creates uncertain employment problems.
Issues like global warming, air pollution, water pollution across boundaries and over-fishing of the ocean are also negative impacts globalization on nature.

This blog post is inspired by the blogging marathon hosted on IndiBlogger for the launch of the #Fantastico Zica from Tata Motors. You can apply for a test drive of the hatchback Zica today.

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