Globalisation is the process of integrating the Indian economy with the world economy. Globalisation has been happening for 100 years, but it has accelerated dramatically in the last half-century. It has led to an increase in production and exchange of goods and services. This is a positive outcome of privatisation and liberalisation. Globalisation is primarily an economic process of interaction and integration with social and cultural components. As a result of different policies to transform the world towards greater interdependence and integration, it is said to be an outcome. Globalization is, in other words, the concept or method of interacting and uniting people, corporations, and governments worldwide.
Globalisation can be classified into five types:
1. Cultural globalisation.
2. Economic globalisation.
3. Technological globalisation.
4. Political globalisation.
5. Financial globalisation.
Impact of Globalisation in the Indian Economy
India’s economy has undergone drastic changes due to urbanization and globalization. Governmental economic policies determine income, investment, savings, and employment. In framing the basic outline of the Indian economy, these economic policies directly affect it.
A critical impact of globalization on Indian society has been the cross-cultural exchange, which has changed various aspects of the country in terms of politics, culture, economics, and social.
Economic unification contributes most to the transformation of a country’s economy into an international economy, however.
Advantages of Globalisation
Labour access: Due to globalisation, nations can now access a broader labour pool. If there is any shortage of knowledgeable workers in any developing nation, they can import labour from other countries. On the other hand, wealthier countries get an opportunity to outsource their low-skill work to developing nations with a low cost of living to reduce the cost of goods sold and move those savings to the customers.
High standard of living: After Globalisation, the Indian economy and the standard of living have increased. The change can be observed by the purchasing behaviour of an individual, especially with those associated with foreign companies. Hence, most cities are upgraded with a better standard of living and business development.
Resource Access: The primary reason for the trade is to gain access to the resources of other countries. It would have been impossible to produce or manufacture luxurious goods if the flow of resources across countries was not permissible—for example, Smartphones.
Impact of Globalisation
Capitalism has been associated with globalisation in terms of economy. Globalization has increased economic freedom and living standards across the globe. It has also sped up the process of offshoring and outsourcing. Outsourcing allowed transnational companies to exploit small and medium-sized businesses at a low price throughout the world. Over the past few years, outsourcing has grown as a method of economic venture due to faster means of communication, especially the growth of information technology (IT).
Globalisation affects the privatization of public utilities and goods, such as security, health, etc. Medicines and seeds, for example, are considered economic goods and are incorporated into recent trade agreements.
It is hoped that this essay on globalization will help students better understand the concept.
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Frequently asked Questions on Globalisation Essay
What are the benefits of globalisation?
1. Access to foreign cultures 2. Technological innovation 3. Improved living standards 4. Emergence of new talent 5. Higher standards of living
What are the main elements of globalisation?
Principle elements of globalisation are: 1. International trade 2. foreign investment 3. capital market flows 4. labor migration 5. diffusion of technology
What are the different types of globalisation?
Political, economic and cultural globalisation are the main types of globalisation.
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