Globalization
Stuid
Globalization is defined as the process of exchanging products, information and technologies between countries. It helps in improving the living standards of people.
In the last few decades, countries across the world have adopted free-market economies. Production potential of nations has increased considerably creating new opportunities for international trade. New trade routes have been discovered allowing people to expand their business with ease.
The term globalization is actually derived from the word ‘globalize’, which means rise of an international network system of economy. Inshort, it can be called an international industrial and financial enterprise.
- Globalization connects societies, helping build good relations between them.
- Facilitates global production on a large scale, paving the way for international economic integration.
- Promotes global tourism.
- Global brands came into existence.
- With globalization, there was extensive migration of laborers. People migrated from one region to another, from one country to another in search of better job opportunities.
Types
There are primarily three types of globalization.
Economic globalization
Economic globalization is spreading rapidly, thanks to the good telecommunication and transport system. It increases economic interdependence among national economies, boosting international movements of goods, products and technologies.
Cultural globalization
It involves transmission of ideas and values, for building social relationships between nations. ‘Globalization’ leads to intermixing of cultures, the world has become a smaller place!
Political globalization
It has an impact on international politics. Political globalization simply means expansion of the global political ecosystem.
Meanwhile, globalization has its advantages and disadvantages as well.
Advantages
- Globalization introduces us to new cultures. These days we enjoy foreign food, music etc ..
- Globalization introduces us to new technologies and innovations. ‘Communication’ is easier and faster than ever.
- ‘Globalization’ betters living conditions and improves living standards of the people.
- Provides job opportunities. With an increasing number of companies, the requirement for laborers also keeps increasing.
Disadvantages
- Companies tend to hire people from all over the world. At times, laborers find it difficult to adjust to the culture and speak the language of the country they are working in.
- Exploitation of labor. MNCs make their employees work for maximum hours and don’t pay appropriate salaries.
- With low income, workers find it difficult to manage their families and maintain a good lifestyle.
- ‘Globalization’ can also result in loss of cultures and ‘local job loss’. While moving to other countries, people tend to forgo their own indigenous cultures and opportunities for working in domestic jobs.
Hence, globalization has both desirable and undesirable consequences.
Globalization in India
The British colonial rule had made India one of the poorest countries in the world. Our first Prime Minister preferred a mixed economy. But, the socialist model of economy did not yield desired results.
Poverty rose alarmingly in the country. It was PV Narsimha Rao, the 10th Prime Minister of India, who introduced the policies of liberalization and privatization for improving the financial situation of our country.
India opened up to globalization, post the economic policy of 1991. Mounting debts forced our country to go global. The recent economic growth of India can be attributed to globalization. India became a leading exporter of goods and several job opportunities were created. Globalization brought about revolutionary changes in the Indian IT sector. Skilled professionals from India were hired in companies across the globe.
Living standards of Indians increased considerably over the years. But all was not well, globalization widened the gap between the rich and poor in the country. Domestic producers faced the heat. They found it hard to compete with the superior quality of foreign products.
Hence globalization has had its negative and positive impacts on independent India!
Read more:Mass-Energy Equivalence
Check your knowledge
Answer) Globalization is defined as the process of exchanging products, information and technologies between countries. It helps in improving the living standards of people.
Answer) Economic globalization, Cultural globalization, and Political globalization.
Answer) PV Narsimha Rao.