globalization (kamaljit singh , 104682276244)16
TRANSCRIPT
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Globalization has many meanings depending on the context and
on the person who is talking about. Though the precise definition
of globalization is still unavailable a few definitions are worth
viewing, Guy Brainbant: says that the process of globalization not
only includes opening up of world trade, development of
advanced means of communication, internationalization of
financial markets, growing importance of MNCs, population
migrations and more generally increased mobility of persons,
goods, capital, data and ideas but also infections, diseases and
pollution. The term globalization refers to the integration of
economies of the world through uninhibited trade and financialflows, as also through mutual exchange of technology and
knowledge. Ideally, it also contains free inter-country movement
of labour. In context to India, this implies opening up the economy
to foreign direct investment by providing facilities to foreign
companies to invest in different fields of economic activity in
India, removing constraints and obstacles to the entry of MNCs in
India, allowing Indian companies to enter into foreign
collaborations and also encouraging them to set up joint ventures
abroad; carrying out massive import liberalization programs by
switching over from quantitative restrictions to tariffs and import
duties, therefore globalization has been identified with the policy
reforms of 1991 in India.
The growing integration of
economies and societies around the world has been one of the
most hotly-debated topics in international economies over thepast few years. Rapid growth and poverty reduction in China,
India, and other countries that were poor 20 years ago, has been a
positive aspect of Liberalization Privatization and Globalization
(LPG). But Globalization has also generated significant
international opposition over concerns that it has increased
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inequality and environmental degradation. There is a need to
study the impact of globalization on developing countries from
the viewpoint of inward foreign direct investment. Attention
should also focused on the role which some developing countries,
particularly from parts of Asia and Latin America, are playing as
initiators of globalization through their own MNCs.
India opened up the economy in
the early nineties following a major crisis that led by a foreign
exchange crunch that dragged the economy close to defaulting on
loans. The response was a slew of Domestic and external sector
policy measures partly prompted by the immediate needs and
partly by the demand of the multilateral organizations. The new
policy regime radically pushed forward in favor of a more open
and market oriented economy.
Globalization embodies increased import
penetration, export sales, competition in services, foreign direct
investment, and exchange rate fluctuations prompted by
international capital movements. As Rama (2003) defines,
globalization is the combination of these changes in the way the
developing countries interact with the rest of the world. In other
words, it is the process through which the domestic factors of
production such as labour and capital will be integrated with the
world economy. The process of globalization in India was
initiated in 1991 in order to give an impetus to the output growth
rate and to help the economy recover from the foreign exchange
crisis and fiscal imbalances. But the benefits of these reforms interms of rise in incomes are obviously not expected to reach
different sections of the population equally. One view is that the
poor may benefit from economic growth only indirectly and,
hence, the proportional benefits of growth going to the poor will
always be less than those accruing to the non-poor. In other
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words, in the process of economic growth in the initial stages, the
positive effects of growth on poor tend to get offset by the
adverse effects of inequality rising, as suggested by Kuznets
(1955). However, if economic growth is accompanied by a
decline in inequality, the poor benefit more than the non-poor---
the situation is described in the literature as pro-poor growth
(see Kakwani, Prakash and Son 2000; Kakwani and Pernia
2000). Even when inequality rises, observed poverty may still
decline if the growth effect dominates the inequality effect, that is,
the extent of fall in poverty due to growth is larger than the rise in
poverty due to rise in inequality.
Given the wide regional variations in India in
terms of socioeconomic development and initial conditions,
economic reforms have been initiated at different levels and at
different points in time across the states. Most of the reforms have
been pursued in the industrial sector, the spread and growth of
which show considerable regional variations. Availability of
infrastructure, which is a strong determinant of industrial
productivity, mobility and income earnings also variessignificantly across the states (Mitra 1997). Hence, it is expected
that economic growth would have wide regional variations and
further that the changing income distribution in the process of
growth would also be different across states.
Among several outcomes, population
mobility across space is one, which is directly influenced by
economic growth. The spatial composition of growth, reflected interms of rural-urban development disparity, motivates people to
shift to areas with better employment prospects. As total poverty
is a weighted average of rural and urban specific poverty ratios,
the net effect of population mobility on poverty depends on the
changes in its rural and urban components. Since economic
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reforms are more urban based, the spatial composition of growth
is expected to change, resulting in a migration of population from
rural to urban areas. The decline in the incidence of poverty
(rural-urban combined) depends on whether urban employment
opportunities are large enough to absorb the increasing supplies
of labour from the rural areas. A large number of empirical
studies exist to suggest that rural migrants have been able to
escape poverty, though they could not graduate to the urban
formal sector (Banerjee 1986; Mitra 1994, 2003; Papola
1981). Even when the incidence of urban poverty rises due to
rural-urban migration, the decline in the combined poverty ratio
may be evident with a fall in the rural poverty incidence occurringin response to out-migration. This is precisely because the weight
of urban poverty is much less in the poverty for all-areas
combined poverty to the rural poverty.
It is not only the overall growth but also the
composition of growth, which is important for poverty reduction.
If the poor are mostly concentrated in the agricultural sector, it is
natural that agriculture-led growth would reduce poverty.However, as Kuznets (1966) points out, in the process of
economic development, both the value-added mix and workforce
structure shift away from agriculture. Hence, recommending an
agriculture-led growth may be counter-intuitive. One may,
therefore, suggest that the growth of the industrial sector or that
of the overall commodity-producing sector plays an important
role in reducing poverty. However, several tertiary activities also
play a key role in generating economic growth. It has been
observed that the entire tertiary sector is not parasitic in nature
(Bhattacharya andMitra 1997); a large segment, particularly in
the context of liberalization, is strongly associated with the
commodity-producing sector. Activities, which were earlier
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conducted within the manufacturing sector for example, are being
undertaken separately because of greater specialization, and,
hence, these may from a part of the tertiary sector. This would,
therefore, call for a careful interpretation of the tertiary sector
rather than treating it purely as redundant. In other words,
tertiarization of value added may also play a role in poverty
reduction as it can generate employment and simultaneously
enhance real income. In other words, in the context of poverty
reduction, the changing composition of growth does not imply a
rise only in the share of industry, but rather in industry and
tertiary sectors both accompany the declining share of agriculture
(see Ravallion and Datt1996).
This report explores the contours of the on-going process of
globalization, liberalization and privatization. Throughout this
report, there is an underlying focus on the impact of LPG on the
Indian economy. It also comments on impact of LPG on
Developing countries.
Key Characteristics of Globalization
Trade
World trade has expanded rapidly over the past two decades.
Since 1986, it has consistently grown significantly faster than
world gross domestic product (GDP).Throughout the 1970s, trade
liberalization within the framework of the General Agreement on
Tariffs and Trade (GATT) was modest and gradual, and involvedthe industrialized countries much than it did the developing ones.
However, from the early 1980s onwards, the extent of trade
liberalization, especially in the developing countries, began to
accelerate.
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This trade expansion did not occur uniformly
across all countries, with the industrialized countries and a group
of 12 developing countries accounting for the lions share. In
contrast, the majority of developing countries did not experience
significant trade expansion. Indeed, most of the Least Developed
Countries (LDCs), a group that includes most of the countries in
sub-Saharan Africa, experienced a proportional decline in their
share of world markets despite the fact that many of these
countries had implemented trade liberalization measures.
Foreign DirectInvestment
During the early 1980s, FDI accelerated, both absolutely and as apercentage of GDP. Since 1980, the policy environment
worldwide has been far more conductive to the growth of FDI.
Over the 1990s, the number of countries adopting significant
liberalization measures towards FDI increased steadily. Indeed,
there are only a few countries that do not actively seek to attract
FDI. However, many of these hopes have not been fulfilled.
Despite the rapid growth of FDI flows to developing countries,
investment remains highly concentrated in about ten of these
countries.
Apart from their increased volume, the nature of
these investments has also changed. The information and
communications technology (ICT) revolution, coupled with
declining transport costs, made the growth of far-flung, multi-
country based production of goods and services both technically
and economically feasible. Production processes could be
unbundled and located across the globe to exploit economic
advantages arising from differences in costs, factors availabilities
and the congeniality of the investment climate. Components and
parts can easily be trans-shipped across the world and assembled
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at will. The communications revolution has made feasible the
coordination and control of these dispersed production systems.
Financial flows
The most dramatic element of globalization over the past two
decades has been the rapid integration of financial markets. The
Bretton Woods system, created after the Second World War,
rested on the foundation of closed capital accounts and fixed
exchange rates. Thus, in contrast to trade and FDI where gradual
liberalization had been initiated, financial globalization was not
even on the policy agenda at the time. The world lived with a
system of separate national financial markets.
This began to change in 1973 with the
breakdown of the Bretton Woods system. But there was no
immediate rush to capital account liberalization. This began in the
industrialized countries only in the early 1980s, with a
subsequent increase in capital flows among them.
As has been pointed out, the world monetary
system underwent three revolutions all at once: deregulation,internationalization, and innovation. Financial liberalization
created the policy environment for expected capital mobility. But
the increase in capital flows was greatly boosted by the revolution
in ICT. This made possible the improved and speedier knowledge
of foreign markets, the development of round the world and
round the clock financial transactions, and the emergence of new
financial instruments, especially derivatives.
Since the late 1980s there has been a global
trend towards financial liberalization. This ranged from relatively
simple steps such as the unification of exchange rates and the
removal of controls over the allocation of credit in the domestic
market to full-blown liberalization of the financial sector that
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included the opening up of capital accounts. Within the
developing world, the latter type of reform was initially confined
to a group of middle-income countries with a relatively greater
range of institutions of financial intermediation that included
bond and equity markets. The action in terms of the explosive
growth in private financial flows from North to South was
concentrated in these emerging markets.
These flows consisted of elements such as
investments in the equity markets of these countries by
investment funds (a major part of which was on behalf of pension
funds), bank lending to the corporate sector, and short-term
speculative flows, especially into currency markets. Lending
through the international bond market also increased in the
1990s in the wake of financial globalization.
Technology
The industrialized countries were the source of the technological
revolution that facilitated globalization but that revolution has
also had ripple effects on the rest of the global economy. At onelevel,the new technology changed international comparative
advantage by making knowledge an important factor of
production. The knowledge-intensive and high-tech industries are
the fastest growing sectors in the global economy and successful
economic development will eventually require that countries
become able to enter and compete in these sectors. This implies
that they will have to emphasize investments in education,
training and the diffusion of knowledge.
There have also been more direct impacts
through the diffusion of these new technologies to developing
countries. This has occurred principally, though not exclusively,
through the activities of multinational enterprises (MNEs).
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However, as in the case of trade and FDI, there are serious North-
South imbalances in access to knowledge and technology. Almost
all the new technology originates in the North, where most
research and development occurs. This is an important source of
the dominance of MNEs in the global markets, and of their
bargaining strength vis--vis developing country governments.
The effects of this new technology have also
spread well beyond the realm of the economic, expanded though
this now is. The same technology that enabled rapid economic
globalization has also been exploited for general use by
governments, civil society and individuals. With the spread of the
Internet, e-mail, low-cost international phone services, mobile
phones and electronic conferencing, the world has become more
interconnected. A vast and rapidly growing stock of information,
ranging from science to trivia, can now be accessed from any
location in the world connected to the Internet. This can be
transmitted and discussed just as easily. At the same time,
satellite television and the electronic press have created a
veritable global fourth estate.
Inter-relationships
These changes in trade, FDI, financial flows and technological
diffusion are increasingly part of a new systemic whole. An
underlying common factor is that all these elements necessarily
evolved in the context of increasing economic openness and the
growing influence of global market forces. This is a profound
change, affecting the role of the State and the behaviour of
economic agents.
Trade and FDI have become more closely
intertwined as the global production system increasingly shapes
patterns of trade, especially through the rapid growth of intra-
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firm trade in components. The MNEs are now estimated to
account for two-thirds of world trade while intra-firm trade
between MNEs and affiliates accounts for about one-third of
world exports. At the same time, trade in components and
intermediate goods has increased. The qualitative changes in the
structure of world trade-specifically an increase in the trade in
components and intermediate inputs-are perhaps as significant as
the quantitative increase in trade. At the same time, portfolio
investments and other financial flows have become an
increasingly important determinant of the macroeconomic
environment that shapes patterns of trade and investment in the
real economy. Similarly, the diffusion of new technology has alsohad a profound effect on comparative advantage, the
competitiveness of enterprises, the demand for labour, work
organization and the nature of the employment contract.
The Multilateral Trading System
In the meantime, the institutional context for international
economic relations also began to change. A new round of
multilateral trade negotiations launched in 1986 set the stage for
the transformation of GATT into the WTO in 1995. A key change
was the broadening of the agenda of trade negotiations well
beyond the GATT remit of reducing tariffs and other direct
barriers to trade. Subjects that were hitherto not considered to be
trade issues such as services, intellectual property rights (IPRs),
investment measures and competition policy (the behind-the-
border issues) were now argued to be within the scope of tradenegotiations.
The rationale for this was that these measures
were also impediments to the free flow of goods and services
across borders. The harmonization of national policies in these
areas was deemed to be essential for the deeper liberalization of
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world trade. This same logic could also be applied to a number of
other aspects of national policy and regulation, especially when
the objective of free trade is extended to encompass concerns
over fair and sustainable trade. Hence there have been lingering
tensions over the desirability of extending this list of behind-the-
border issues.
With hindsight, many developing country
governments perceived the outcome of the Uruguay Round to
have unbalanced. For most developing countries (some did gain),
the crux of the unfavourable deal was the limited market-access
concessions they obtained from developed countries in exchange
for the high costs they now realize they incurred in binding
themselves to the new multilateral trade rules.
The Global Financial System
The governance structure of the global financial system has also
been transformed. As private financial flows have come to dwarf
official flows, the role and influence of private actors such as
banks, hedge funds, equity funds and rating agencies hasincreased substantially. As a result, these private financial
agencies now exert tremendous power over the economic policies
of developing countries, especially the emerging market
economics. Rating agencies determine whether countries can
have access to sovereign borrowing and, if so, the cost of this. The
assessments of stock analysts have a profound influence on the
flow of funds into stock markets, while the decisions of hedge
fund managers often impact on national currencies.
Within the logic of perfect markets, there
would be nothing wrong with these developments. The increased
influence of private actors in the global financial system should
lead to greater efficiency in worldwide allocation of financial
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resources, as well as to the associated benefit of exerting greater,
and much needed, market discipline on developing country
governments. However, financial markets, even at the national
level, are typically one of the most imperfect of markets. There
are severe problems of information failure, especially information
asymmetries.
These problems are magnified at the level of
global financial markets, where international lenders may have
limited and poor information about local borrowers. For example,
concerns have been raised over the operations of hedge funds and
rating agencies, and the probity of some large international
investors in the light of recent corporate scandals. This leads to an
over-extension of credit, including to unsound local banks and
firms. Perceptions that there are implicit guarantees about the
fixedness of exchange rates and bailouts compound this process.
A further important source of failure in this
global financial market is the absence, at that level, of effective
institutions for supervising it, such as exist at the national level.
Invariably, therefore, the global financial
system has plagued by a series of financial crises of increasing
frequency and severity. The negative impact of these crises has
been devastating, wiping out the gains of years of prior economic
progress and inflicting heavy social costs through increased
unemployment and poverty.
However, only a small minority of developing
countries have become part of this new global financial system. As
in the case of FDI, these private financial flows have remained
highly concentrated in emerging markets. Thus the vast majority
of developing countries, including almost all the LDCs, receive
hardly any private financial flows.
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For aid-dependent low-income countries,
mostly in sub-Saharan Africa, their marginalization from financial
markets means that they are deprived of any means to mitigate
the effects of the significant decline in ODA. As a result, many of
these countries are still, some two decades later, caught in the
debt trap they fell into in the early 1980s.
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The great significance of globalization to India and to the world
has drawn many scholars and academicians including business
historians, economists, social scientists, political economists,
management experts and others to write on the subject.
Globalization has been addressed from different angles by various
scholars and hence it is rather difficult to classify the literature on
globalization. However, majority of the writings has been related
to impact of globalization either at firm level or at aggregate level
and so have been rather normative in their analyses. Obviously, a
natural outfall of the impact studies is the existence of two
schools of thought from this approach viz., first, globalization has
been/will be good for India, and second, globalization has notbeen good for India. Yet, a third set of scholars have dealt with
some dynamics of globalization with reference to some short time
intervals.
Scholars in the first school of thought have
argued on the theoretical principle that free trade and
competition is good for the whole world in the long run and
therefore globalization is also good for India. The proponents ofGATT/WTO base their argument on these lines. Foreign
companies, foreign governments and international bodies have
lashed out at the closed-door policies of the GOI towards
international trade and investment. Research works based on
specific cases of success have also towed this line of argument.
The studies of Johri (1983) and Kumar (1996) are some
examples.
Scholars in the second school of thought have
based their argument on the impact that liberalization and
opening up of the Indian economy had on India. Kidron (1965),
Kurien (1966), Athreye (1999), Nayak (2000, 2002, 2003),
and Kumar (2003) have studied the impact of FDI on India.
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Stiglitz (2002) argues that Globalization has not met its promises
to the developing countries. Lall (1999), Sharma (2000) and
Nayak (2003) have undertaken studies on nature of exports and
imports of India.
The third set of scholars have dealt with the
process dynamics of globalization in some specific time periods.
Bagchi (1972) argues that the strong political patronage helped
the British companies to flourish and grow in India during the
early decades of the 20th century. Tomlinson (1989) states that
the short-term structures created by British expatriates and
multinationals to generate immediate success limited their
options for future evolution. Encarnation (1989) discusses the
interplay of forces among local government, local companies and
the foreign companies from a politico-economic point of view.
None of the previous studies have looked into
the basic issues raised in this paper, viz., what has globalization
meant in terms of meaning, genesis and characteristics for India
in the past six decades? Overlooking these fundamental issues has
lead to confusion on the subject and has lead to misplaced views
on the problems and prospects of globalization. Further, the
existing literature has looked into globalization either in some
specific time period or looked at some specific issue of
globalization.
There are some other researches also available on Globalization
and their views are as follows:
EPICOR GLOBALIZATION SURVEY 2005
Globalization is unavoidable, but manufacturers can, and do, have
influence over its impact. No manufacturer is immune to
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downward pressure on pricing, but manufacturers are competing
through superior quality and delivery, and taking up the challenge
by increasing exports.
Success or failure boils down to two very clear benchmarkssales growth, and downsizing. Manufacturers can influence both
those benchmarks by being proactive rather than reactive. Those
who take the highest advantage of globalization adapt rather than
fight. They take advantage of, for example, low-cost suppliers, and
lower-cost labor and new market opportunities.
Yes, globalization strains the enterprise and its
infrastructure, even at the most successful manufacturers. Theymanage their supply chains actively, through leaner operations
and driving down costs. And they make demand and supply chain
technology and infrastructure a corporate priority.
Impact of Globalization on Developing Countries (With
Special Reference To India) by Krishn A Goyal
The lesson of recent experience is that a country must carefully
choose a combination of policies that best enables it to take the
opportunity while avoiding the pitfalls. For over a century the
United States has been the largest economy in the world but
major developments have taken place in the world economy since
then, leading to the shift of focus from the US and the rich
countries of Europe to the two Asian giants-India and China.
Economics experts and various studies conducted across theglobe envisage India and China to rule the world in the 21st
century. India, which is now the fourth largest economy in terms
of purchasing power parity, may overtake Japan and become third
major economic power within 10 years.
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Does Globalization Cause Inequity Among Rich and Poor
Nations?By M. StephenLucas (March 2007)
This paper has demonstrated that inequality exists and that it is
widening. When the rich nations get richer other factors are at
work such as more efficient use of resources, which need stable,
open governments and the infrastructure for improved social
conditions. Many poor nations fail because the state fails, or with
a large population growth rate, have difficulties managing the
allocation of their resources. Rich nations have implemented
policies and a capitalist approach to distribution of goods andservices that propagates long-term growth. Not all nations are
endowed with an equal proportion of factors inputs; inequality
will exist. By opening up trade, nations can share their factors
more equitably and the total global pool of wealth will increase.
For most of the 20thcentury, rich nations gave aid
to poor nations only to see it squandered. The people of the
country must have the political will and capability to selectleaders that choose a path of economic growth instead of cultural
stagnation. Many of these countries are poor and have an unequal
distribution within the country itself due to corrupt government
leaders that view international aid as a source of personal income.
Several of the poorer nations do not want to open
up to international trade due to fear of loosing their own identity,
when in fact they are loosing an opportunity for its people to
move out of poverty. Many of the poorer nations have an agrarian
economy that is labor intensive, without technology. They are
changing over to an industrial economy that is not as labor
intensive. During this transition, they will provide cheap labor
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markets for multinational corporations, and wages for these
people will increase.
Globalization, when there is free movement of goods and services,
capital, people and technology, helps poorer nations.International trade allows each nation to maximize the benefits of
its inputs factors where it has a comparative advantage. Control of
these resources must be dispersed to individuals so that they are
empowered to make decisions that will improve their economic
condition.
Globalization Processin India: A Historical Perspective Since
Independence, 1947(Amar K J R Nayak, KalyanChakravarti
and PrabinaRajib)
The overall analysis of the seven variables of globalization
process discovers the meaning of globalization with reference to
India. India tried to integrate with the world economy as soon as
it became a sovereign state but with its own terms and conditions.
However, over these years, India has slowly been pressured bythe several external forces like the foreign governments, foreign
corporations and international agencies to integrate on their
terms. The roots of the present globalization process in India lie
way back in the 1980s. India started to liberalize trade in 1977-
78. This open policy increased the number of items in the Open
General License (OGL).
Most importantly, we find that Globalization withreference to India has been more of globalization in India and less
of globalization of India. In other words, globalization has been
only a one-way process that if foreign enterprises have found a
favorable way to do business in India since Independence.
Foreign companies have invested in India only when the policies
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of the GOI have favored either the market seeking or the
efficiency seeking objectives of the foreign firms. The foreign
firms have either left India or critiqued India otherwise.
From the historical observations, it is imperativethat the GOI, the foreign companies and the governments of other
nations have to recognize and respect the need for both
Globalization of India and globalization in India in order to ensure
that the globalization process takes off in a balanced and
sustained manner. Hence, while undertaking policies on
liberalization of Indian economy, the GOI has to take care that
liberalization does not lead to globalization of India alone as it has
been presumed in the past 15 years.
The policies of the GOI should be able to direct
foreign direct investment into manufacturing sector and high
technology areas through which the Indian economy can
effectively be part of the globalization process worldwide. With
similar framework of our study, further research may be
conducted on other developing countries in Asia to enhance our
understanding of globalization process in other countries of Asia.
EXAMINING STUDENTS PERCEPTIONS OF GLOBALIZATION
AND STUDY ABROAD PROGRAMS AT HBCUs (Stevon Walker,
James O. Bukenya and Terrence Thomas)
In summary, the results of the regression model suggest that
while number of variables such as major and classification arefound to have statistically significant relationships towards
globalization, demographic variables and information source
variables are not good indicators of student perceptions of
globalization. As found in the survey, as the level of education
increases, so does the skepticism about globalization. One
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interesting findings is that with a global mindset, however,
business students seem to be more favorably inclined toward
globalization than non-business students. While the findings of
this study highlight several significant variables, some limitations
should be noted. Specifically, the small sample size warrant some
caution when extending the results to other HBCUs. Second, the
researcher relied on students to self-report their attitudes and
perceptions as accurately as possible. Finally, though a multi-
institutional and longitudinal study would provide the greatest
breadth and depth of data, this study is restricted to one
institution and one academic year.
By analyzing the history of India integrating with the world
business and economy during the last about 60 years, 1947-2004,
this paper attempts to explain the overall globalization process
and provide the meaning, genesis and characteristics of
globalization with respect to India.
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OBJECTIVES
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Primary Objective
The primary objective of the study is to find out the impacts of
globalization that how globalization is affecting our economy or
nation, i.e. India whether it has positive effects on our economy orits negatively affecting our economy.
Secondary Objective
The secondary objectives if conducting this study are as follows:
To know the thinking of people about the Globalization
To know globalizations effects on employment
To make the people more aware about globalization
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NEED
22
The need for conducting this research arises because there is
need to make the people aware about the meaning of
globalization and make clear how globalization is affecting them
and also our economy. Globalization have both positive effects, i.e.
Transfer of capital, Increased Employment, Technology Transfer,
Opportunity to create a cross-culture workings, etc. and negative
effects, i.e. Transfer of Diseases, Global Warming, etc. So there is a
need to know that whether the globalization is resulting in
positive results or negative results more, therefore, for this
purpose this study on globalizations impacts have been
conducted.
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SCOPE
23
This study, in future can help in conducting other studies related
to any other matters about globalization. This study can also be
used to design the globalization policies or to modify them
because this study also serves the opinions of different people
about globalization and its impacts on the Indias economic
situations/conditions.
There is one more important thing that this
study makes the meaning of globalization clear very efficiently
which can help anybody or any other researcher to make his and
others view about globalization clear.
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RESEARCH METHODOLOGY
24
The following research is a descriptive kind of research and
conducted by taking a sample of 30 people from general public.
The sample units are taken by using random sampling technique,
i.e. sample units are taken randomly from general public. The
sample size is taken as 30 due to convenience of researcher. The
questionnaire has been made containing questions regarding
impact of globalization and people are asked to fill it. The
questionnaire is filled by conducting face to face interaction.
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DATA ANALYSIS
25
Q.1 What do you think Globalization is?
Ans:
Import-
Export
Widening the
market
Private
sectorinvolvement
Total
No. ofRespondents
4 17 9 30
Q.2 Globalization carries lots of risks.
Ans:
StronglyAgree
Agree Neutral Disagree StronglyDisagree
Total
No. of
Respondents
4 10 9 6 1 30
Q.3 Globalization creates wealth.
Ans:
StronglyAgree
Agree Neutral Disagree StronglyDisagree
Total
No. of
Respondents
12 14 1 3 0 30
Q.4 Globalization threatens jobs.
Ans:
StronglyAgree
Agree Neutral Disagree StronglyDisagree
Total
No. of
Respondents
2 5 7 14 2 30
Q.5 Globalization offers opportunities.
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DATA ANALYSIS
26
Ans:
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. of
Respondents
14 9 3 4 0 30
Q.6 Globalization affects culture.
Ans:
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. of
Respondents
6 15 7 1 1 30
Q.7 Globalization plays a central role.
Ans:
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. of
Respondents
1 9 11 6 3 30
Q.8 Globalization is Americanization.
Ans:
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. of
Respondents
1 8 9 7 5 30
Q.9 Globalization acts as a bridge between nations.
Ans:
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DATA ANALYSIS
27
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. of
Respondents
16 12 1 1 0 30
Q.10 If there are two products, one is local (Indian) and other one
is Imported, which one will you prefer?
Ans:
Indian Imported Total
No. of
Respondents
22 8 30
Q.11 Do you think globalization leads to reduction in salaries of
Indian people?
Ans:
Yes No Total
No. ofRespondents 9 21 30
Q.12 I like food from other cultures & countries.
Ans:
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
No. ofRespondents 3 12 9 4 2 30
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FINDINGS OFTHE RESEARCH
29
According to the majority of people, i.e. almost 73% people dont
think that globalization leads to reduction in salaries of Indian
people.
Half of the people likes the culture of other countries and theirfood, it means they are happy with the globalization policy.
At the end all the people thinks that the overall effect of
globalization is positive because they have said that it transfer the
technology and increase the employment and the weightage given
by them to the negative effects is low so we can say that
globalization leads to positive effects more rather than negative
ones.
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LIMITATIONS
30
Following are the difficulties/limitations occurred in conducting
this study:
Educated people having the knowledge of globalization werequiet difficult to figure out.
Questions were a little bit confusing for the respondents.
Time constraints were there, i.e. there was less time toconduct a study.
Some of the respondents were not seriously filling thequestionnaire.
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CONCLUSION
31
In this study, we were finding the impact of globalization and
seeing that what was the general peoples thinking about the
globalization and in what manner globalization was effecting
them? So at the end the study have concluded that most of the
people are aware of globalization and its impact on the Indian
economy and on themselves as well.
People think that globalization offers
opportunities but its not increasing the employment.
Globalization creates wealth also. People think that globalization
acts as a bridge between nations, i.e. all the nations can works as a
team and earn more profits.
Globalization results in trade expansion,
increased direct foreign investment, supports multilateral trading
system, technology transfer, etc.
So as an overall the impacts of globalization,
according to the peoples point of view, are positive. Negative
effects are less than the positive ones.
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ANNEXURES
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QUESTIONNAIRE
Name: ____________________________________________ _______________________
Age: ______________________________________________ _______________________
Sex: ______________________________________________ ________________________
Occupation: ________________________________________ _____________________
Q.1 What do you think Globalization is?
Ans. (a) Import-Export
(b) Widening the market
(c) Private sector involvement
Q.2 Globalization carries lots of risks.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.3 Globalization creates wealth.
Ans. (a) Strongly Agree
(b) Agree
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ANNEXURES
33
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.4 Globalization threatens jobs.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.5 Globalization offers opportunities.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.6 Globalization affects culture.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
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ANNEXURES
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(d) Disagree
(e) Strongly Disagree
Q.7 Globalization plays a central role.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.8 Globalization is Americanization.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
Q.9 Globalization acts as a bridge between nations.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
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ANNEXURES
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(e) Strongly Disagree
Q.10 If there are two products, one is manufactured within the
India and other one is manufactured abroad (Imported), which
one will you prefer?
Ans. (a) Indian
(b) Imported
If you have selected second one then how more will you pay
for it?
(a) 20 percent
(b) 10 percent
(c) 5 percent
(d) not a penny more
Q.11 Do you think that globalization results in the reduction in the
salaries of Indian people and threaten their jobs.
Ans. (a) Yes
(b) No
Q.12 I like food from other cultures & countries.
Ans. (a) Strongly Agree
(b) Agree
(c) Neutral
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ANNEXURES
36
(d) Disagree
(e) Strongly Disagree
Q.13 So as an overall, whats your opinion that Globalization
results in :( Rank Accordingly, mark a circle on the rank)
Ans. Positive Effects
Increased Employment 1 2 3 4 5
Technology Transfer 1 2 3 4 5
Transfer of Capital 1 2 3 4 5
Negative Effects
Global Warming 1 2 3 4 5
Transfer of Diseases 1 2 3 4 5
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BIBLIOGRAPHY
References has been taken to conduct this study from the
following studies previously conducted:
Globalization Survey 2005 by EPICORImpact of Globalization on Developing Countries (WithSpecial Reference to India) by Krishn A GoyalDoes Globalization Cause Inequity among Rich and Poor
Nations by M. Stephen Lucas
Indias Globalization: Evaluating the economic consequencesby Baldev Raj Nayar
Globalization & its impactsGlobalization, Growth & Poverty by N.R.
Bhanumurthy&A.Mitra, April 2006
Globalization Process in India: A Historical Perspective SinceIndependence, 1947 by Amar K J R Nayak,
KalyanChakravarti&PrabinaRajib
Examining Students perception of Globalization & Studyabroad programs at HBCUs by Stevon Walker, James O.
Bukenya& Terrence Thomas
What Do You Think? A Globalization Survey
Following websites also helped a lot
www.google.comwww.bing.com