INTRODUCTION

You had learnt about Social Development. In this last unit of this course we
have focused on the process of Globalization. People all over the world have
become closer than ever before. We see an increased movement of people,
knowledge and ideas, and goods and money across national borders that have
led to increased interconnectedness among the world population -economically,
politically, socially and culturally.

MEANING OF GLOBALIZATION
The term Globalization has been used to define various aspects of global
expansion in the past decades. It is centred on the integration of international
markets for goods, services, technology, finance and labour. This essentially
means opening up of national economies to global market forces and
corresponding reduction in the scope of state to shape macro-economic policies.
Simply put, there is a growing integration of various countries to the world
economy. It results mostly from a freer movement of capital, products and
information, which affects not just the economy, but also, the political, cultural,
social and environmental arenas.

Globalisation has resulted in:

 increased international trade
 a company operating in more than one country
 greater dependence on the global economy
 freer movement of capital, goods, and services
THE BACKGROUND OF GLOBALIZATION
The process of globalization is not new. But earlier the pace of such a process
was so slow that we hardly noticed it. However, now with the advent of the
information technology, newer means of communication have made the world a
very small place. Not only the pace of the globalization process, but the
penetration and integration of the changes induced in our day to day life has
made the impact of globalization many fold higher. With this process the world
has become one huge market place. The term “globalization” began to be used
more commonly in the 1980s, reflecting technological advances that made
international transactions easier and quicker —both trade and financial flows.

There are several key factors which have influenced the process of
globalisation: Globalization  Rapidly changing technologies for transportation
and communications continue to dissolve the barriers of time, distance, and
ignorance. In the twentieth century some of the most important technological
innovations that changed diplomacy were the jet plane, satellite
communications, fibre-optic cables, and the Internet. Internet and mobile
technology has allowed greater communication between people in different
countries.  Freedom of trade - organisations like the World Trade Organisation
(WTO) promote free trade between countries, which help to remove barriers
between countries.  Labour availability and skills - countries such as India
have lower labour costs and also high skill levels. Labour intensive industries
such as clothing can take advantage of cheaper labour costs and reduced legal
restrictions in LEDCs.  Ideas also shape globalization, particularly the
widespread belief that free trade, private enterprise, and competitive markets
promote efficiency and economic growth.

In the late 1980s, due to poor economic performance under protectionist

policies and various economic crises, many developing countries began to
dismantle their barriers to international trade. Many former Eastern bloc
countries integrated into the global trading system and developing Asia (one of
the most closed regions to trade in 1980s) progressively dismantled barriers to
trade.
IMPACT OF GLOALIZATION
The impact of globalization on the society is multi-dimensional and all-
pervasive. The broad reach of globalization easily extends to daily choices of
personal, economic, and political life. Globalization can also create a
framework for cooperation among nations on a range of non-economic issues
that have crossborder implications, such as immigration, the environment, and
legal issues. At the economic level, there is a trend towards increasing economic
liberalization. This is reflected in freer trade, more deregulated labour, goods
and financial markets. There is a marked increase in exports of goods and
services in which nations have their respective competencies.
One of the major impacts of globalization in the political sphere is that it
reduces the importance of nation states. Many have organized themselves into
trade blocs. Emergence of supranational institutions such as the European
Union, the WTO, The International Criminal Court etc. replaced or extended the
national functions to facilitate international agreement.
There has been a tremendous increase in consumerism, for goods and services,
whether necessary or perceived. A distinct change in life-styles with rapid
adaptation to worldwide trends is on the rise. The overall result has been the
emergence of a global consumer society with a tendency towards greater
cultural homogenization. The contemporary revolution in communication
technology has had a dramatic impact in the arena of popular culture.
Information technology enables a wide diversity of locally-based popular
culture to develop and reach a larger audience. For example, “world music” has
developed a major international audience. Old and new musical traditions that a
few years ago were limited to a small local audience are now playing on the
world stage.
GLOBALIZATION: INDIAN SCENARIO
Indian economy experienced major policy changes in early 1990s. The new
economic reform, popularly known as, Liberalization, Privatization and
Globalization (LPG model) aimed at making the Indian economy as fastest
growing economy and globally competitive. The series of reforms undertaken
with respect to industrial sector, trade as well as financial sector aimed at
making the economy more efficient. It also marks the advent of the real
integration of the Indian economy into the global economy. The acceptance of
structural adjustment program in 1991 was the first step towards liberalization
of the Indian economy. The essentials of the New Economy policy (NEP) are:
Privatization, Globalization, Modernization, Improving productive efficiency
and growth rate.

The structural Adjustment involved in seeking these objectives are:

 Decontrol and deregulation
 Freedom of entry to foreign goods and investments
 Adoption of market-friendly fiscal, exchange, trade and credit policy
 Cutback in public expenditure
 Limitation of fiscal deficit to low levels
 Adoption of up-to-date technologies

Various Sectors of Indian Economy

Since India is an agrarian economy, globalisation has touched every aspect of
agriculture like technological advancement, improved production techniques
and quality based enhancement. All three sectors of agriculture viz. farming,
marketing and industrial support have made tremendous progress. In farming,
globalisation has introduced complete mechanisation of the farms. Many new
techniques are being used for seed development and production. Introduction of
organic and hybrid varieties of seeds has revitalised the entire sector.
Furthermore, new irrigation methods and techniques have also been used. In
marketing of the produce, globalisation has helped farmers fetch new markets.
This has given a boost to the agricultural exports. Introduction of big retailers
from abroad offer them good procurement price and a continuous market for the
produce. Also, ecommerce has helped in the post production activities like
selling. Industrial development also is a direct by-product of globalisation as it
has led to highly sophisticated farm machinery, fertilizer etc. Also, there is a
growth in food processing industry due to increased consumerism. On the other
hand, there are issues like GM crops, competition in pricing, WTO compliance
issues which limits the support the governments can extend to farmers etc.
Many Indian industries have invested abroad and have entered into various
kinds of agreements like joint ventures or mergers and acquisitions etc. This has
raised their global competitiveness. Relaxation of investment norms and
licences has attracted huge amounts of foreign investment especially in services,
telecommunications, electrical equipment etc. The export-orientation is also
increasing by setting up of various Special Economic Zones (SEZs). The
government is giving a lot of impetus to the small scale industrial sector. There
is an abundant availability of loans, microfinance and even other forms of easy
credit.
Globalisation has opened door to foreign investors to enter the domestic market.
This has led to more competition as innovation has become the new norm. The
domestic financial intermediaries have taken on more risk-intensive roles to
ensure 163 Globalization survival in this highly competitive age. Banking
structures and products have become more streamlined and efficient due to the
stiff competition by the customer- responsive and efficient private banks. One of
the major forces of globalization in India has been in the growth of outsourced
IT and business process outsourcing (BPO) services. The last few years have
seen an increase in the number of skilled professionals in India employed by
both local and foreign companies to service customers in the US and Europe in
particular. Taking advantage of India’s lower cost but educated and English-
speaking work force, and utilizing global communications technologies such as
voice-over IP (VOIP), email and the internet, international enterprises have been
able to lower their cost base by establishing outsourced knowledge-worker
operations in India.
MERITS AND DEMERITS OF GLOBALIZATION
There are debates about globalization and its positive and negative effects.
While globalization is thought of by many as having the potential to make
societies richer through trade and to bring knowledge and information to people
around the world, there are many others who perceive globalization as
contributing to the exploitation of the poor by the rich, and as a threat to
traditional cultures as the process of modernization changes societies.

The Merits of Globalization are as follows:

 There is an International market for companies and for consumers there is
a wider range of products to choose from.
 Increase in flow of investments from developed countries to developing
countries, which can be used for economic reconstruction. Foreign direct
investment (“FDI”) tends to increase at a much greater rate that the
growth in world trade, helping boost technology transfer, industrial
restructuring, and the growth of global companies.
 Greater and faster flow of information (through TV, Internet) between
countries and greater cultural interaction has helped to overcome cultural
barriers.
 Technological development has resulted in reverse brain drain in
developing countries.
 Economies of Scale- Globalization enables large companies to realize
economies of scale that reduce costs and prices, which in turn supports
further economic growth, although this can hurt many small businesses
attempting to compete domestically.

The Demerits of Globalization are as follows:

 The outsourcing of jobs to developing countries has resulted in loss of
jobs in developed countries as a result, now they are following
protectionism measures, for example USA is restricting BPO.
 There is a greater threat of spread of communicable diseases.
 There is an underlying threat of multinational corporations with immense
power ruling the globe. For smaller developing nations at the receiving
end, it could indirectly lead to a subtle form of colonization.
 Exploitation of labour by offering low wages
 Increase in global terrorism
 Environmental concerns such as worldwide increase in pollution
Conclusion
Globalization is a defining feature of our modern world, shaping the way we
live, work, and interact with one another. By embracing its opportunities and
addressing its challenges, we can build a more interconnected, prosperous, and
harmonious global community for future generations.

Globalization is a complex and multifaceted phenomenon that has

fundamentally reshaped our world in numerous ways. As we conclude our
exploration of globalization, it becomes evident that its impacts are both
extensive and varied, touching nearly every aspect of human life, from
economics and culture to politics and the environment.

One of the key conclusions drawn from the study of globalization is its role in
fostering interconnectedness and interdependence among nations, economies,
and societies. This interconnectedness has facilitated the exchange of goods,
services, ideas, and cultures on a global scale, leading to increased prosperity,
technological advancements, and cultural exchange in many parts of the world.

However, globalization has also brought about challenges and disparities that
cannot be ignored. It has widened the gap between the wealthy and the poor,
both within and among nations, leading to social inequality and economic
imbalances. Moreover, globalization has contributed to environmental
degradation, as increased economic activity has put pressure on natural
resources and ecosystems.

REFERENCES
Schaeffer, Robert K. 2009 Undersdanding Globalization: The Social
Consequences of Political, Economic, and Environmental Change 5th
Edition, Rowmon & Littlefield Pub. Group, Maryland
Martell, Luke. 2010. The Sociology of Globalization, Ist Edition
SoumyenSikdar 28 Apr 2006 by Contemporary Issues in Globalization: An
Introduction to Theory and Policy in India Paperback