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Globalization is a term that includes a wide range of social and economic variations. It can encompass
topics like the cultural changes, economics, finance trends, and global market expansion. There ought to
be positive and negative effects of globalization - it all comes as a package. Globalization helps in
creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder,
and unrest. The great financial crisis that just happened is the biggest example of how negative
globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the
same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a
factor responsible for both repression and the social boom.

What happens when there is a growing integration of economies across the globe? Majorly there have
been positive impacts of this global phenomenon - through liberalization, privatization and globalization
(LPG). Due to globalization, there has been significant flow of inward foreign direct investment. MNCs
are getting a chance to explore various different markets across economies and explore the untapped
potential.





  


India's economy opened up during the early nineties. The policy measures on the domestic front
demanded that there was a requirement of multinational organizations to set up their offices here. The
market became more open and the economy started responding to the external (global) market. Due to
globalization, contacts have been developed all across the globe, with the pace of integration
dramatically increasing.







It was in July 1991, when foreign currency reserves had tumbled down to almost $1 billion; inflation was
at a soaring high of 17%, highest level of fiscal deficit, and foreign investors loosing confidence in Indian
Economy. With all these coupling factors, capital was on the verge of flying out of the country and we
were on the brink of become loan defaulters. It was at this time that with so many bottlenecks at bay, a
complete overhauling of the economic system was required. Policies and programs changed accordingly.
This was the best time for us to realize the importance of globalization.







1. ð
 The first initiative towards globalization had been taken the moment there was an
announcement of devaluating the Indian currency by a hoping 18-19% against all the major
 global currencies. This was a major initiative in the international foreign exchange arena. The
Balance of payment crisis could also be resolved by this measure.
2. ð


  The core elements of globalization are privatization and liberalization. Under the
privatization scheme, bulk of the public sector undertakings have been/ and are still being sold
to the private sector. Thus the concept of PPP (public private partnership) came up.
3. r   ð 

 ð Allowing FDI inflows is a major step of globalization.
The foreign investment regime has been quite transparent and thus the economy is getting
boosted up. Various sectors were opened up for liberalizing the FDI regime.

Is globalization delivering all the desired results to the masses? Or only a few can feel the benefits of
globalization? Figures have out rightly proved that the global average per capita income showed a
strong surge throughout the 20th century but the income gap between rich and poor countries have not
been bridged for many decades now. The ultimate inference being that globalization hasn't shown
positive results. a
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