Industrial Economic Environment

GLOBALISATION

Submitted by:-
Sukanya Chhetri
M.Com-II, Sem-IV
 INTRODUCTION

 The modern world is seen as the world without geographical

boundaries and any kind of barriers. Globalisation has been
the major force behind this.

 Globalisation is the integration of the world economy and

exchanging the ideas, products, technologies etc.

 The globalisation hit India late but had huge impact on

various economic policies and various other aspects.
 DEFINITIONS
1. The World Bank

Globalisation means:-

a) Gradual abolishment of import controls over all items.

including consumption goods.
b) Reducing the rate of Import Duty.
c) Privatising public sector enterprises.

2. Shravan Kumar Singh

“Globalisation means the global reach of capital to all the

world’s resources and markets.”

3. Russi Mody

“Globalisation in a two way traffic: first it means free

competition, high productivity using new technology and
second, selling goods in a single market of the whole world”
OBJECTIVES FULFILLED BY GLOBALISATION

i. Macro-economic and employment generation policy.

ii. Improving the productivity of employment.

iii. Social sector.

iv. Balanced regional development.

v. Promotion of skill development.

 NATURE OF GLOBALISATION

i. Liberalisation.

ii. Free trade.

iii. Increased collaboration.

iv. Privatisation.

v. Economic reforms.
 ASPECTS OF GLOBALISATION

i. Trade of globalisation.

ii. Capital and investment movement.

iii. Migration.

iv. Dissemination of knowledge.

 REASONS FOR GLOBALISATION

i. Better resources.

ii. Low cost of production.

iii. Operating internationally.

iv. Market expansion.

v. Increased profit.
 IMPACT OF GLOBALISATION

POSITIVE IMPACT NEGATIVE IMPACT

i. Global market. i. Job security.

ii. Cross-cultural management. ii. Fluctuation in prices.

iii. Foreign trade. iii. Unemployment.

iv. Resource imperative. iv. Spread of fast food chain.

v. Competition. v. Western culture.

GLOBALISATION IN INDIAN ECONOMY

i. Indian economy adopted the policy of restriction after

independence.

ii. But in 1991, due to the economic crises the government of

India decided to open its market for the foreign investments.

iii. The new economic policies adopted had impact on every

sector of the Indian economy.
 MAJOR POLICY CHANGES

i. Licence abolishing.

ii. Dilution of MRTP act.

iii. Fiscal reforms.

iv. Foreign investment encouraged.

v. Outward looking policy.

vi. Public sector reforms.

 CONCLUSIONS
i. Globalisation has increased the trade of products, ideas,
technologies etc. and created the world without boundaries
but it also had some negative impact on the developing
countries.

ii. Flowing with globalisation, India is shining in nearly every

prospect. India is getting a global recognition and slowly
moving towards to become a major economic and political
strength.

iii. Though the development is progressing rapidly, stillmany

basic problems like rural poverty, corruption and political
stability remained unchanged.
THANK YOU.