interdisciplinary PROJECT

The Process of globalisation and Its impact

Prepared By

[Link] MAHESHWARKAR
2. MOHAMMAD IBRAHIM KHAN
[Link] ZAID KHAN
[Link] JAISWAL
[Link] DAWAR
Table of contents………..
[Link] is globalization?
[Link] of globalization
[Link] of globalization
[Link] responsible for location of production unit by MNC
[Link] MNCs operate production in different countries
[Link] that have unabled globalization
[Link] taken by the government for fair globalization
[Link]
[Link] of transport
[Link]
[Link]
Globalization

► Globalization is the process of integrating a nation’s economy with the global economy.

► It is the result of numerous actions that have been taken to make the world more
interconnected and integrated.

► It involves creating networks and undertaking projects to remove social, economic, and
geographic obstacles.

► Globalization strives to create connections such that events in India can be influenced by
those thousands of miles away.

► In other words, globalization is the process of individuals, businesses, and governments

cooperating and coming together from all over the world.
 IMPACT OF GLOBALIZATION

▻ Economic Growth: Globalization has led to increased foreign trade and investment,
which has contributed to economic growth and development.

Job Opportunities: It has created new job opportunities, especially in sectors like IT and services.

Technological Advancements: The spread of technology and innovation has been accelerated due to glob
ization.

Cultural Exchange: There has been an exchange of cultural ideas, leading to a more interconnected world

Challenges: It has also posed challenges such as increased competition for local businesses,
cultural homogenization, and environmental concerns
Impact of Globalization in India

► MnCs have expanded their investments in India over

the last 20 years.

► MnCs have expressed interest in urban sectors like

banking, automobiles, electronics, soft drinks, and
fast food.

► Many wealthy people like to purchase these items.

These industries have created new jobs.
Impact of Globalization in India

►Local companies that provide these industries’ raw

materials and other essentials have also prospered.

The increased competition has helped several Indian

firms.

They have raised their production standards by

investing in cutting-edge technology and production
methods.

Some people have benefited from successful ties

with MnCs.
History of globalisation
The history of globalization is a fascinating journey that spans thousands of years. Here's a brief overview:

Ancient Trade Routes: The concept of globalization can be traced back to ancient trade routes like the Sil
k Road
(1st century BC - 5th century AD), which connected China to the Mediterranean, facilitating the exchange
of goods,
culture, and ideas.

Age of Exploration: The period from the 15th to the 17th century saw European explorers like Christopher
Columbus and Vasco da Gama discovering new lands, leading to the exchange of goods, people, and culture
s
on a global scale.

Industrial Revolution: The 19th century brought the Industrial Revolution,

which significantly increased production capabilities and led to the expansion of global trade networks.
History of globalisation

Post-World War II: After World War II, the establishment of international
organizations like the United Nations and the World Trade Organization helped
to promote global cooperation and trade.

Digital Age: The late 20th and early 21st centuries have seen the rise of the
digital age,with the internet and advancements in communication technology
making the world more interconnected than ever before
 Production Across Countries

►Trade served as he primary means of contact between distant countries.

s
►It is influenced by large firms, also called Multinational Corporations (MNCs).

►A multinational corporation (MNC) owns or manages production across several

nations.

►These MNCs locate production centers, headquarters, and factories in areas where
the resources and labor are cheap.
Production Across Countries

►It keeps production costs down and allows MNCs to make more money.

►MNCs locate production close to markets, where trained and unskilled labor
is cheap and easily accessible, and other production components are also
available.

►MNCs may also ask the government to take action to safeguard their
interest
Interlinking Production Across Countries

Production across countries requires investment.

►It refers to the sum of money spent on assets, such as land, buildings,
machinery, and other equipment.

►The investment made by MNCs is referred to as foreign investment made with

the hope of profiting from the assets.

►Over the years, the MNCs have expanded their business and have interacted with
the local producers in numerous ways:
Interlinking Production Across Countries

►Joint Production: MNCs collaborate or partner with an established local business

in joint production. The funding enables regional producers to acquire cutting-edge
technologies and new and enhanced assets

Acquisition of Local Companies: Several MNCs purchase local enterprises with

vast networks to grow their production.

Controlled Production: MNCs source materials and make orders with the local
companies that create goods, resulting in carefully regulated output. The MNC
markets the products under its brand name
 Foreign Trade and Integration of Markets

Foreign trade as a connector:

For a long time, foreign trade has been the main channel connecting countries.

In history, trade routes linked India and South Asia to markets in both the East and West,
enabling extensive trade along these routes.

Trading interests attracted companies like the East India Company to India.

Basic function of foreign trade:

Foreign trade offers producers opportunities to go beyond domestic markets (their own
countries).

.
Foreign Trade and Integration of Markets

Producers can:

Sell their goods within their country and

Compete in international markets.

Benefits for buyers:

Importing goods from other countries expands the range of choices beyond
what is produced domestically
 Chinese Toys in India

►
Chinese manufacturers learn of an opportunity to export
toys to India, where toys are sold at a high price.

►
They start exporting plastic toys to India.

►
Buyers in India now have the option of choosing between
Indian and the Chinese toys.

►
Because of the cheaper prices and new designs, Chinese
toys become more popular in the Indian markets.

►
Within a year, 70 to 80 per cent of the toy shops have
replaced Indian toys with Chinese toys.

►
Toys are now cheaper in the Indian markets than earlier.
 Chinese Toys in India


As a result of trade, Chinese toys come into the Indian markets.

 In the competition between Indian and Chinese toys, Chinese toys prove
better.

 Indian buyers have a greater choice of toys and at lower prices.

 For the Chinese toy makers, this provides an opportunity to expand

business.

 The opposite is true for Indian toy makers. They face losses, as their toys
are selling much less.
Globalization has Been Enabled by the Following Factors

1. TECHNOLOGY

► Rapid technological advancement has accelerated the

globalisation process. This has made transporting goods
over long distances much quicker and more affordable.

► Information is now easily available due to the

development in information and communication
technologies.
Globalization has Been Enabled by the Following Factors

►These developments made it possible for workers to

be spread out across different locations and still be a
part of a virtual workspace, which helped to fuel the IT
revolution in India.

Advanced computing capabilities have made it possible

to automate production, control it precisely, and
achieve homogeneity.
Globalization has Been Enabled by the Following Factors

[Link] Liberalisation
► The government imposes different trade barriers to regulate trade flow within international boundaries. Levying
import taxes is an example of trade barriers.

► The process of liberalization involves removing trade restrictions or barriers imposed by the government. The
government is said to be more liberal when there are fewer limitations.

► Trade limitations can support increased growth and productivity in a developing economy. However, it might be
hazardous once it reaches a particular stage of development.

► In 1991, India liberalized its trade, allowing businesses to freely import and export commodities and materials.
Organizations like the World Bank supported this.
Globalization has Been Enabled by the Following Factors

[Link] Investment Policy

► Foreign direct investments (FRI) refer to a company’s significant financial investments in foreign
enterprises.

► The investment can be used to expand a company’s territory and establish an international
presence.
Globalization has Been Enabled by the Following Factors

4. World Trade Organization (WTO)

► The World Trade Organization (WTO) was formed in 1947 from the General Agreement on Tariffs and
Trade (GATT).

► WTO encompasses 164 member countries that regulate international trade rules.

► The goal of the WTO is to maintain a smooth and predictable trade flow.

► WTO also works to settle any trade disputes that may occur.
Steps taken by govt for Fair Globalization

► Fair globalization ensures that the benefits of globalization are spread more fairly while
simultaneously opening up opportunities for everyone.

► Here are some steps the government can take to make this happen:

♦ The government can help small producers increase their output.

♦ It can guarantee that labor laws are adhered to and that workers’ rights are upheld.

♦ The government can use trade and investment barriers if necessary.

♦ It can bargain with the WTO for “fairer rules.”

♦ It can also join forces with other developing nations to fight the wealthy nations’ dominance in the WTO.
Approaches to Consider for Fair Globalization

► Fair globalization is anticipated to improve a country’s chances of development.

► The government can use specific strategies to promote fair globalization.

► Some of the approaches are as follows:

♦ Government can develop strategies to assist and motivate small producers to increase their output.

♦ The government must ensure that the labor rules are correctly implemented and that workers receive
their rights.

♦ The government must negotiate with the WTO because they can contribute significantly to fair
globalization.

♦ Finally, to achieve the goal of fair globalization, the government must step up and take the required
actions toward the dominance of developed nations.
Liberalisation

[Link]: Liberalization refers to the removal or reduction of government restrictions and

[Link] in the economy to encourage private sector participation and foreign trade.

[Link]: Before liberalization, India had a mixed economy with many restrictions on private
[Link] and foreign trade to protect domestic industries. However, by the early 1990s, India fa
ced an economic crisis, leading to the introduction of liberalization policies in 1991.

[Link]: The government reduced tariffs, removed restrictions on foreign trade, and allowed
4. foreign direct investment (FDI) to promote economic growth.

[Link]: Liberalization led to increased competition, improved efficiency, and access to global
[Link], which helped boost economic growth and development in India
Means of transport

Roadways: India's road network is one of the largest in the world. It's classifie
d into categories
like National Highways, State Highways, District Roads, and Village Roads. Roa
d transport is vital for connecting rural and urban areas.

Railways: The Indian Railways is one of the world's largest railway networks. It
plays a crucial role in transporting goods and passengers across the country, m
aking it an essential part of the economy.

Waterways: Inland and coastal waterways are significant for transport,

especially for heavy and bulky goods. India has a vast coastline and several
navigable rivers that support this mode of transport.
Means of transport

Airways: Air transport is the fastest mode andis crucial for

distance travel and reaching remote areas. India has several major
international and domestic airports that handle passenger and
cargo flights.

Pipelines: Pipelines are used for transporting crude oil, petroleum

products, and natural gas. They are efficient and minimize the risk
of spills compared to other modes.
 Communication

Technological Advancements: With globalization, technological innovations in commu

nication have expanded. This includes widespread use of the internet, mobile phones,
and satellite communication.

Global Connectivity: Enhanced communication technologies have connected people an

d businesses globally, making it easier to access information, communicate instantly, a
nd conduct international trade.

Economic Integration: Improved communication networks facilitate better coordinati

on and efficiency in global business operations, supply chains, and financial markets.

Cultural Exchange: The sharing of information and ideas across borders has led to a ri
ch exchange of cultures, knowledge, and perspectives .
Conclusion

globalization of the Indian economy highlights that while globalization

has driven economic growth, innovation, and cultural exchanges, it also
poses challenges like increased competition and environmental impacts.
Navigating these upsides and downsides is key to ensuring sustainable
and inclusive development for India. Quite the balancing a ct!
Thank you