Political – some use “globalization” to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Politically, the United States has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence f globalization and with the help of The United States’ own economy, the People’s Republic of China has experienced some tremendous growth within the past decade.
If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power. Informational – increase in information flows between geographically remote locations. Arguably this is a genealogical change with the advent of fiber optic communications, satellites, and increased availability of telephone and Internet.
Language – the most popular language is English. O About 35% of the world’s mail, telexes, and cables are in English. O Approximately 40% of the world’s radio programs are in English. About 50% of all Internet traffic uses English. Competition – Survival in the new global business market calls for improved productivity and increased competition. Due to the market becoming worldwide, companies in various industries have to upgrade their products and use technology skillfully in order to face increased competition.
Ecological – the advent of global environmental challenges that might be solved with international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Since many factories are built in developing countries with less environmental regulation, globalize and free trade may increase pollution. On the other hand, economic development historically required a “dirty” industrial stage, and it is argued that developing countries should not, via regulation, be prohibited from increasing their standard of living.
Cultural – growth of cross- cultural contacts; advent of new categories of consciousness and identities which embodies cultural diffusion, the desire to increase one’s standard of living and enjoy foreign products and ideas, adopt new technology and practices, and participate in a “world culture”. Some bemoan the resulting consumerism and loss of languages. Also see Transformation of culture. O Spreading of multiculturalism, and better individual access to cultural diversity (e. G. Through the export of Hollywood plywood movies).
Some consider such “imported” culture a danger, since it may supplant the coal culture, causing reduction in diversity or even assimilation. Others consider multiculturalism to promote peace and understanding between peoples. O Greater international travel and tourism. WHO estimates that up to 500,000 people are on planes at any time. O Greater immigration, including illegal Spread of local consumer products (e. G. Food) to other countries immigration o Pokemoon, Kudos , Idol series, Youth, Resort, Backbone, and Namespace.
Accessible to those who have Internet or Television, leaving out a substantial segment of the Earth’s population. O Worldwide sporting events such as FIFE World Cup and the Olympic Games. O Incorporation of multinational corporations in to new media. As the sponsors of the All-Blacks rugby team, Aids had created a parallel website with a downloaded interactive rugby game for its fans to play and compete. Social – development of the system of non-governmental organizations as main agents of global public policy, including humanitarian aid and developmental efforts.
Technical o Development of a global telecommunications infrastructure and greater transponder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable, and wireless telephones o Increase in the number of standards applied globally; e. G. Copyright laws, patents and world trade agreements. Legal/Ethical The creation of the international criminal court and international Justice Crime importation and raising awareness of global crime-fighting movements. O efforts and cooperation.
IMPACT of Globalization on Indian Industry Globalization has had extensive impact on the world of business. In a business environment marked by globalization, the world seems to shrink, and other businesses halfway around the world can exert as great an impact on a business as one right down the street. Internet access and e-commerce have brought small-scale coops in Third World nations into the same arena as thriving businesses in the industrialized world, and visions of low-income workers handwriting rugs on primitive looms that compete with rug dealers in major cities are not totally far- fetched.
Globalization has affected workforce demographics, as well. Today’s workforces are characterized by greater diversity in terms of age, gender, ethnic and racial background, and a variety of other demographic factors. In fact, management of diversity has become one of the primary issues of 21st-century business. Indian industry started when the government opened the country’s markets to foreign investments in the early sass. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BOP.
Globalization means the dismantling of trade barriers between nations and the integration of the nations economies through financial flow, trade in goods and services, and corporate investments between nations. Globalization has increased across the world in recent years due to the fast progress that has been dad in the field of technology especially in communications and transport. The government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country.
As a result of this, globalization of the Indian Industry took place on a major scale The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign investments into the industry especially in the BOP, pharmaceutical, petroleum, and manufacturing industries. As huge amounts of foreign direct investments were owing to the Indian Industry, they boosted the Indian economy quite significantly. The benefits of the effects of globalization in the Indian Industry are that many petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country.
This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced. The various negative Effects of Globalization on Indian Industry are that it increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods.
This reduced the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries. The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their Jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries. The effects of globalization on Indian Industry have proved to be positive as well as negative.
The government of India must try to make such economic policies with regard to Indian Industry’s Globalization that are beneficial and not harmful. The share of Indian manufacturing industry towards India GAP has grown from 25. 38% in 1991 to 27% in 2004. Further, the contribution of the Indian manufacturing sector to the Indian export sector has increased from 52% in 1970 to in 1980 and in 1990 and 77% 2000-01. Furthermore, the Indian manufacturing exports accounted for a little over 5% (in 1990) of the value of output of the Indian manufacturing sector but today it is close to 10%.
India exports manufactured products worth about IIS$ 50 billion and a recent study on Indian manufacturing industry has forecast an annual growth of 17% by the end of the year 2015. In other words at this rate of increase the quantum of Indian’s manufacturing exports will cross the IIS$ 300 billion mark by the end of the financial year 2015. Most of this business would be in the domain of auto components, pharmaceutical, apparel, specialty chemicals, and electrical and electronic equipment sectors.
The Indian sectors which grew tremendously as a result of globalization of the Indian manufacturing sector are as follows – Capital goods Engineering goods Chemicals Petroleum Chemicals & fertilizers Packaging Consumer non-durables Electronics IT Hardware & peripherals Gems & Jewelry Leather & leather products Mining Steel & non-ferrous metals Textiles & apparels The positive effect of the globalization of the Indian manufacturing sector can be corroborated from the following facts – The Indian industrial growth exceeded
