globalization (kamaljit singh , 104682276244)16

8/6/2019 Globalization (Kamaljit Singh , 104682276244)16

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INTRODUCTION

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Globalization has many meanings depending on the context and

on the person who is talking about. Though the precise definition

of globalization is still unavailable a few definitions are worth

viewing, Guy Brainbant: says that the process of globalization not

only includes opening up of world trade, development of

advanced means of communication, internationalization of

financial markets, growing importance of MNCs, population

migrations and more generally increased mobility of persons,

goods, capital, data and ideas but also infections, diseases and

pollution. The term globalization refers to the integration of

economies of the world through uninhibited trade and financialflows, as also through mutual exchange of technology and

knowledge. Ideally, it also contains free inter-country movement

of labour. In context to India, this implies opening up the economy

to foreign direct investment by providing facilities to foreign

companies to invest in different fields of economic activity in

India, removing constraints and obstacles to the entry of MNCs in

India, allowing Indian companies to enter into foreign

collaborations and also encouraging them to set up joint ventures

abroad; carrying out massive import liberalization programs by

switching over from quantitative restrictions to tariffs and import

duties, therefore globalization has been identified with the policy

reforms of 1991 in India.

The growing integration of

economies and societies around the world has been one of the

most hotly-debated topics in international economies over thepast few years. Rapid growth and poverty reduction in China,

India, and other countries that were poor 20 years ago, has been a

positive aspect of Liberalization Privatization and Globalization

(LPG). But Globalization has also generated significant

international opposition over concerns that it has increased


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INTRODUCTION

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inequality and environmental degradation. There is a need to

study the impact of globalization on developing countries from

the viewpoint of inward foreign direct investment. Attention

should also focused on the role which some developing countries,

particularly from parts of Asia and Latin America, are playing as

initiators of globalization through their own MNCs.

India opened up the economy in

the early nineties following a major crisis that led by a foreign

exchange crunch that dragged the economy close to defaulting on

loans. The response was a slew of Domestic and external sector

policy measures partly prompted by the immediate needs and

partly by the demand of the multilateral organizations. The new

policy regime radically pushed forward in favor of a more open

and market oriented economy.

Globalization embodies increased import

penetration, export sales, competition in services, foreign direct

investment, and exchange rate fluctuations prompted by

international capital movements. As Rama (2003) defines,

globalization is the combination of these changes in the way the

developing countries interact with the rest of the world. In other

words, it is the process through which the domestic factors of

production such as labour and capital will be integrated with the

world economy. The process of globalization in India was

initiated in 1991 in order to give an impetus to the output growth

rate and to help the economy recover from the foreign exchange

crisis and fiscal imbalances. But the benefits of these reforms interms of rise in incomes are obviously not expected to reach

different sections of the population equally. One view is that the

poor may benefit from economic growth only indirectly and,

hence, the proportional benefits of growth going to the poor will

always be less than those accruing to the non-poor. In other


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INTRODUCTION

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words, in the process of economic growth in the initial stages, the

positive effects of growth on poor tend to get offset by the

adverse effects of inequality rising, as suggested by Kuznets

(1955). However, if economic growth is accompanied by a

decline in inequality, the poor benefit more than the non-poor---

the situation is described in the literature as pro-poor growth

(see Kakwani, Prakash and Son 2000; Kakwani and Pernia

2000). Even when inequality rises, observed poverty may still

decline if the growth effect dominates the inequality effect, that is,

the extent of fall in poverty due to growth is larger than the rise in

poverty due to rise in inequality.

Given the wide regional variations in India in

terms of socioeconomic development and initial conditions,

economic reforms have been initiated at different levels and at

different points in time across the states. Most of the reforms have

been pursued in the industrial sector, the spread and growth of

which show considerable regional variations. Availability of

infrastructure, which is a strong determinant of industrial

productivity, mobility and income earnings also variessignificantly across the states (Mitra 1997). Hence, it is expected

that economic growth would have wide regional variations and

further that the changing income distribution in the process of

growth would also be different across states.

Among several outcomes, population

mobility across space is one, which is directly influenced by

economic growth. The spatial composition of growth, reflected interms of rural-urban development disparity, motivates people to

shift to areas with better employment prospects. As total poverty

is a weighted average of rural and urban specific poverty ratios,

the net effect of population mobility on poverty depends on the

changes in its rural and urban components. Since economic


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INTRODUCTION

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reforms are more urban based, the spatial composition of growth

is expected to change, resulting in a migration of population from

rural to urban areas. The decline in the incidence of poverty

(rural-urban combined) depends on whether urban employment

opportunities are large enough to absorb the increasing supplies

of labour from the rural areas. A large number of empirical

studies exist to suggest that rural migrants have been able to

escape poverty, though they could not graduate to the urban

formal sector (Banerjee 1986; Mitra 1994, 2003; Papola

1981). Even when the incidence of urban poverty rises due to

rural-urban migration, the decline in the combined poverty ratio

may be evident with a fall in the rural poverty incidence occurringin response to out-migration. This is precisely because the weight

of urban poverty is much less in the poverty for all-areas

combined poverty to the rural poverty.

It is not only the overall growth but also the

composition of growth, which is important for poverty reduction.

If the poor are mostly concentrated in the agricultural sector, it is

natural that agriculture-led growth would reduce poverty.However, as Kuznets (1966) points out, in the process of

economic development, both the value-added mix and workforce

structure shift away from agriculture. Hence, recommending an

agriculture-led growth may be counter-intuitive. One may,

therefore, suggest that the growth of the industrial sector or that

of the overall commodity-producing sector plays an important

role in reducing poverty. However, several tertiary activities also

play a key role in generating economic growth. It has been

observed that the entire tertiary sector is not parasitic in nature

(Bhattacharya andMitra 1997); a large segment, particularly in

the context of liberalization, is strongly associated with the

commodity-producing sector. Activities, which were earlier


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INTRODUCTION

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conducted within the manufacturing sector for example, are being

undertaken separately because of greater specialization, and,

hence, these may from a part of the tertiary sector. This would,

therefore, call for a careful interpretation of the tertiary sector

rather than treating it purely as redundant. In other words,

tertiarization of value added may also play a role in poverty

reduction as it can generate employment and simultaneously

enhance real income. In other words, in the context of poverty

reduction, the changing composition of growth does not imply a

rise only in the share of industry, but rather in industry and

tertiary sectors both accompany the declining share of agriculture

(see Ravallion and Datt1996).

This report explores the contours of the on-going process of

globalization, liberalization and privatization. Throughout this

report, there is an underlying focus on the impact of LPG on the

Indian economy. It also comments on impact of LPG on

Developing countries.

Key Characteristics of Globalization

Trade

World trade has expanded rapidly over the past two decades.

Since 1986, it has consistently grown significantly faster than

world gross domestic product (GDP).Throughout the 1970s, trade

liberalization within the framework of the General Agreement on

Tariffs and Trade (GATT) was modest and gradual, and involvedthe industrialized countries much than it did the developing ones.

However, from the early 1980s onwards, the extent of trade

liberalization, especially in the developing countries, began to

accelerate.


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INTRODUCTION

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This trade expansion did not occur uniformly

across all countries, with the industrialized countries and a group

of 12 developing countries accounting for the lions share. In

contrast, the majority of developing countries did not experience

significant trade expansion. Indeed, most of the Least Developed

Countries (LDCs), a group that includes most of the countries in

sub-Saharan Africa, experienced a proportional decline in their

share of world markets despite the fact that many of these

countries had implemented trade liberalization measures.

Foreign DirectInvestment

During the early 1980s, FDI accelerated, both absolutely and as apercentage of GDP. Since 1980, the policy environment

worldwide has been far more conductive to the growth of FDI.

Over the 1990s, the number of countries adopting significant

liberalization measures towards FDI increased steadily. Indeed,

there are only a few countries that do not actively seek to attract

FDI. However, many of these hopes have not been fulfilled.

Despite the rapid growth of FDI flows to developing countries,

investment remains highly concentrated in about ten of these

countries.

Apart from their increased volume, the nature of

these investments has also changed. The information and

communications technology (ICT) revolution, coupled with

declining transport costs, made the growth of far-flung, multi-

country based production of goods and services both technically

and economically feasible. Production processes could be

unbundled and located across the globe to exploit economic

advantages arising from differences in costs, factors availabilities

and the congeniality of the investment climate. Components and

parts can easily be trans-shipped across the world and assembled


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INTRODUCTION

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at will. The communications revolution has made feasible the

coordination and control of these dispersed production systems.

Financial flows

The most dramatic element of globalization over the past two

decades has been the rapid integration of financial markets. The

Bretton Woods system, created after the Second World War,

rested on the foundation of closed capital accounts and fixed

exchange rates. Thus, in contrast to trade and FDI where gradual

liberalization had been initiated, financial globalization was not

even on the policy agenda at the time. The world lived with a

system of separate national financial markets.

This began to change in 1973 with the

breakdown of the Bretton Woods system. But there was no

immediate rush to capital account liberalization. This began in the

industrialized countries only in the early 1980s, with a

subsequent increase in capital flows among them.

As has been pointed out, the world monetary

system underwent three revolutions all at once: deregulation,internationalization, and innovation. Financial liberalization

created the policy environment for expected capital mobility. But

the increase in capital flows was greatly boosted by the revolution

in ICT. This made possible the improved and speedier knowledge

of foreign markets, the development of round the world and

round the clock financial transactions, and the emergence of new

financial instruments, especially derivatives.

Since the late 1980s there has been a global

trend towards financial liberalization. This ranged from relatively

simple steps such as the unification of exchange rates and the

removal of controls over the allocation of credit in the domestic

market to full-blown liberalization of the financial sector that


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INTRODUCTION

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included the opening up of capital accounts. Within the

developing world, the latter type of reform was initially confined

to a group of middle-income countries with a relatively greater

range of institutions of financial intermediation that included

bond and equity markets. The action in terms of the explosive

growth in private financial flows from North to South was

concentrated in these emerging markets.

These flows consisted of elements such as

investments in the equity markets of these countries by

investment funds (a major part of which was on behalf of pension

funds), bank lending to the corporate sector, and short-term

speculative flows, especially into currency markets. Lending

through the international bond market also increased in the

1990s in the wake of financial globalization.

Technology

The industrialized countries were the source of the technological

revolution that facilitated globalization but that revolution has

also had ripple effects on the rest of the global economy. At onelevel,the new technology changed international comparative

advantage by making knowledge an important factor of

production. The knowledge-intensive and high-tech industries are

the fastest growing sectors in the global economy and successful

economic development will eventually require that countries

become able to enter and compete in these sectors. This implies

that they will have to emphasize investments in education,

training and the diffusion of knowledge.

There have also been more direct impacts

through the diffusion of these new technologies to developing

countries. This has occurred principally, though not exclusively,

through the activities of multinational enterprises (MNEs).


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INTRODUCTION

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However, as in the case of trade and FDI, there are serious North-

South imbalances in access to knowledge and technology. Almost

all the new technology originates in the North, where most

research and development occurs. This is an important source of

the dominance of MNEs in the global markets, and of their

bargaining strength vis--vis developing country governments.

The effects of this new technology have also

spread well beyond the realm of the economic, expanded though

this now is. The same technology that enabled rapid economic

globalization has also been exploited for general use by

governments, civil society and individuals. With the spread of the

Internet, e-mail, low-cost international phone services, mobile

phones and electronic conferencing, the world has become more

interconnected. A vast and rapidly growing stock of information,

ranging from science to trivia, can now be accessed from any

location in the world connected to the Internet. This can be

transmitted and discussed just as easily. At the same time,

satellite television and the electronic press have created a

veritable global fourth estate.

Inter-relationships

These changes in trade, FDI, financial flows and technological

diffusion are increasingly part of a new systemic whole. An

underlying common factor is that all these elements necessarily

evolved in the context of increasing economic openness and the

growing influence of global market forces. This is a profound

change, affecting the role of the State and the behaviour of

economic agents.

Trade and FDI have become more closely

intertwined as the global production system increasingly shapes

patterns of trade, especially through the rapid growth of intra-


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INTRODUCTION

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firm trade in components. The MNEs are now estimated to

account for two-thirds of world trade while intra-firm trade

between MNEs and affiliates accounts for about one-third of

world exports. At the same time, trade in components and

intermediate goods has increased. The qualitative changes in the

structure of world trade-specifically an increase in the trade in

components and intermediate inputs-are perhaps as significant as

the quantitative increase in trade. At the same time, portfolio

investments and other financial flows have become an

increasingly important determinant of the macroeconomic

environment that shapes patterns of trade and investment in the

real economy. Similarly, the diffusion of new technology has alsohad a profound effect on comparative advantage, the

competitiveness of enterprises, the demand for labour, work

organization and the nature of the employment contract.

The Multilateral Trading System

In the meantime, the institutional context for international

economic relations also began to change. A new round of

multilateral trade negotiations launched in 1986 set the stage for

the transformation of GATT into the WTO in 1995. A key change

was the broadening of the agenda of trade negotiations well

beyond the GATT remit of reducing tariffs and other direct

barriers to trade. Subjects that were hitherto not considered to be

trade issues such as services, intellectual property rights (IPRs),

investment measures and competition policy (the behind-the-

border issues) were now argued to be within the scope of tradenegotiations.

The rationale for this was that these measures

were also impediments to the free flow of goods and services

across borders. The harmonization of national policies in these

areas was deemed to be essential for the deeper liberalization of


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INTRODUCTION

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world trade. This same logic could also be applied to a number of

other aspects of national policy and regulation, especially when

the objective of free trade is extended to encompass concerns

over fair and sustainable trade. Hence there have been lingering

tensions over the desirability of extending this list of behind-the-

border issues.

With hindsight, many developing country

governments perceived the outcome of the Uruguay Round to

have unbalanced. For most developing countries (some did gain),

the crux of the unfavourable deal was the limited market-access

concessions they obtained from developed countries in exchange

for the high costs they now realize they incurred in binding

themselves to the new multilateral trade rules.

The Global Financial System

The governance structure of the global financial system has also

been transformed. As private financial flows have come to dwarf

official flows, the role and influence of private actors such as

banks, hedge funds, equity funds and rating agencies hasincreased substantially. As a result, these private financial

agencies now exert tremendous power over the economic policies

of developing countries, especially the emerging market

economics. Rating agencies determine whether countries can

have access to sovereign borrowing and, if so, the cost of this. The

assessments of stock analysts have a profound influence on the

flow of funds into stock markets, while the decisions of hedge

fund managers often impact on national currencies.

Within the logic of perfect markets, there

would be nothing wrong with these developments. The increased

influence of private actors in the global financial system should

lead to greater efficiency in worldwide allocation of financial


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INTRODUCTION

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resources, as well as to the associated benefit of exerting greater,

and much needed, market discipline on developing country

governments. However, financial markets, even at the national

level, are typically one of the most imperfect of markets. There

are severe problems of information failure, especially information

asymmetries.

These problems are magnified at the level of

global financial markets, where international lenders may have

limited and poor information about local borrowers. For example,

concerns have been raised over the operations of hedge funds and

rating agencies, and the probity of some large international

investors in the light of recent corporate scandals. This leads to an

over-extension of credit, including to unsound local banks and

firms. Perceptions that there are implicit guarantees about the

fixedness of exchange rates and bailouts compound this process.

A further important source of failure in this

global financial market is the absence, at that level, of effective

institutions for supervising it, such as exist at the national level.

Invariably, therefore, the global financial

system has plagued by a series of financial crises of increasing

frequency and severity. The negative impact of these crises has

been devastating, wiping out the gains of years of prior economic

progress and inflicting heavy social costs through increased

unemployment and poverty.

However, only a small minority of developing

countries have become part of this new global financial system. As

in the case of FDI, these private financial flows have remained

highly concentrated in emerging markets. Thus the vast majority

of developing countries, including almost all the LDCs, receive

hardly any private financial flows.


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INTRODUCTION

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For aid-dependent low-income countries,

mostly in sub-Saharan Africa, their marginalization from financial

markets means that they are deprived of any means to mitigate

the effects of the significant decline in ODA. As a result, many of

these countries are still, some two decades later, caught in the

debt trap they fell into in the early 1980s.


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LITERATURE REVIEW

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The great significance of globalization to India and to the world

has drawn many scholars and academicians including business

historians, economists, social scientists, political economists,

management experts and others to write on the subject.

Globalization has been addressed from different angles by various

scholars and hence it is rather difficult to classify the literature on

globalization. However, majority of the writings has been related

to impact of globalization either at firm level or at aggregate level

and so have been rather normative in their analyses. Obviously, a

natural outfall of the impact studies is the existence of two

schools of thought from this approach viz., first, globalization has

been/will be good for India, and second, globalization has notbeen good for India. Yet, a third set of scholars have dealt with

some dynamics of globalization with reference to some short time

intervals.

Scholars in the first school of thought have

argued on the theoretical principle that free trade and

competition is good for the whole world in the long run and

therefore globalization is also good for India. The proponents ofGATT/WTO base their argument on these lines. Foreign

companies, foreign governments and international bodies have

lashed out at the closed-door policies of the GOI towards

international trade and investment. Research works based on

specific cases of success have also towed this line of argument.

The studies of Johri (1983) and Kumar (1996) are some

examples.

Scholars in the second school of thought have

based their argument on the impact that liberalization and

opening up of the Indian economy had on India. Kidron (1965),

Kurien (1966), Athreye (1999), Nayak (2000, 2002, 2003),

and Kumar (2003) have studied the impact of FDI on India.


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LITERATURE REVIEW

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Stiglitz (2002) argues that Globalization has not met its promises

to the developing countries. Lall (1999), Sharma (2000) and

Nayak (2003) have undertaken studies on nature of exports and

imports of India.

The third set of scholars have dealt with the

process dynamics of globalization in some specific time periods.

Bagchi (1972) argues that the strong political patronage helped

the British companies to flourish and grow in India during the

early decades of the 20th century. Tomlinson (1989) states that

the short-term structures created by British expatriates and

multinationals to generate immediate success limited their

options for future evolution. Encarnation (1989) discusses the

interplay of forces among local government, local companies and

the foreign companies from a politico-economic point of view.

None of the previous studies have looked into

the basic issues raised in this paper, viz., what has globalization

meant in terms of meaning, genesis and characteristics for India

in the past six decades? Overlooking these fundamental issues has

lead to confusion on the subject and has lead to misplaced views

on the problems and prospects of globalization. Further, the

existing literature has looked into globalization either in some

specific time period or looked at some specific issue of

globalization.

There are some other researches also available on Globalization

and their views are as follows:

EPICOR GLOBALIZATION SURVEY 2005

Globalization is unavoidable, but manufacturers can, and do, have

influence over its impact. No manufacturer is immune to


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LITERATURE REVIEW

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downward pressure on pricing, but manufacturers are competing

through superior quality and delivery, and taking up the challenge

by increasing exports.

Success or failure boils down to two very clear benchmarkssales growth, and downsizing. Manufacturers can influence both

those benchmarks by being proactive rather than reactive. Those

who take the highest advantage of globalization adapt rather than

fight. They take advantage of, for example, low-cost suppliers, and

lower-cost labor and new market opportunities.

Yes, globalization strains the enterprise and its

infrastructure, even at the most successful manufacturers. Theymanage their supply chains actively, through leaner operations

and driving down costs. And they make demand and supply chain

technology and infrastructure a corporate priority.

Impact of Globalization on Developing Countries (With

Special Reference To India) by Krishn A Goyal

The lesson of recent experience is that a country must carefully

choose a combination of policies that best enables it to take the

opportunity while avoiding the pitfalls. For over a century the

United States has been the largest economy in the world but

major developments have taken place in the world economy since

then, leading to the shift of focus from the US and the rich

countries of Europe to the two Asian giants-India and China.

Economics experts and various studies conducted across theglobe envisage India and China to rule the world in the 21st

century. India, which is now the fourth largest economy in terms

of purchasing power parity, may overtake Japan and become third

major economic power within 10 years.


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LITERATURE REVIEW

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Does Globalization Cause Inequity Among Rich and Poor

Nations?By M. StephenLucas (March 2007)

This paper has demonstrated that inequality exists and that it is

widening. When the rich nations get richer other factors are at

work such as more efficient use of resources, which need stable,

open governments and the infrastructure for improved social

conditions. Many poor nations fail because the state fails, or with

a large population growth rate, have difficulties managing the

allocation of their resources. Rich nations have implemented

policies and a capitalist approach to distribution of goods andservices that propagates long-term growth. Not all nations are

endowed with an equal proportion of factors inputs; inequality

will exist. By opening up trade, nations can share their factors

more equitably and the total global pool of wealth will increase.

For most of the 20thcentury, rich nations gave aid

to poor nations only to see it squandered. The people of the

country must have the political will and capability to selectleaders that choose a path of economic growth instead of cultural

stagnation. Many of these countries are poor and have an unequal

distribution within the country itself due to corrupt government

leaders that view international aid as a source of personal income.

Several of the poorer nations do not want to open

up to international trade due to fear of loosing their own identity,

when in fact they are loosing an opportunity for its people to

move out of poverty. Many of the poorer nations have an agrarian

economy that is labor intensive, without technology. They are

changing over to an industrial economy that is not as labor

intensive. During this transition, they will provide cheap labor


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LITERATURE REVIEW

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markets for multinational corporations, and wages for these

people will increase.

Globalization, when there is free movement of goods and services,

capital, people and technology, helps poorer nations.International trade allows each nation to maximize the benefits of

its inputs factors where it has a comparative advantage. Control of

these resources must be dispersed to individuals so that they are

empowered to make decisions that will improve their economic

condition.

Globalization Processin India: A Historical Perspective Since

Independence, 1947(Amar K J R Nayak, KalyanChakravarti

and PrabinaRajib)

The overall analysis of the seven variables of globalization

process discovers the meaning of globalization with reference to

India. India tried to integrate with the world economy as soon as

it became a sovereign state but with its own terms and conditions.

However, over these years, India has slowly been pressured bythe several external forces like the foreign governments, foreign

corporations and international agencies to integrate on their

terms. The roots of the present globalization process in India lie

way back in the 1980s. India started to liberalize trade in 1977-

78. This open policy increased the number of items in the Open

General License (OGL).

Most importantly, we find that Globalization withreference to India has been more of globalization in India and less

of globalization of India. In other words, globalization has been

only a one-way process that if foreign enterprises have found a

favorable way to do business in India since Independence.

Foreign companies have invested in India only when the policies


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LITERATURE REVIEW

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of the GOI have favored either the market seeking or the

efficiency seeking objectives of the foreign firms. The foreign

firms have either left India or critiqued India otherwise.

From the historical observations, it is imperativethat the GOI, the foreign companies and the governments of other

nations have to recognize and respect the need for both

Globalization of India and globalization in India in order to ensure

that the globalization process takes off in a balanced and

sustained manner. Hence, while undertaking policies on

liberalization of Indian economy, the GOI has to take care that

liberalization does not lead to globalization of India alone as it has

been presumed in the past 15 years.

The policies of the GOI should be able to direct

foreign direct investment into manufacturing sector and high

technology areas through which the Indian economy can

effectively be part of the globalization process worldwide. With

similar framework of our study, further research may be

conducted on other developing countries in Asia to enhance our

understanding of globalization process in other countries of Asia.

EXAMINING STUDENTS PERCEPTIONS OF GLOBALIZATION

AND STUDY ABROAD PROGRAMS AT HBCUs (Stevon Walker,

James O. Bukenya and Terrence Thomas)

In summary, the results of the regression model suggest that

while number of variables such as major and classification arefound to have statistically significant relationships towards

globalization, demographic variables and information source

variables are not good indicators of student perceptions of

globalization. As found in the survey, as the level of education

increases, so does the skepticism about globalization. One


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interesting findings is that with a global mindset, however,

business students seem to be more favorably inclined toward

globalization than non-business students. While the findings of

this study highlight several significant variables, some limitations

should be noted. Specifically, the small sample size warrant some

caution when extending the results to other HBCUs. Second, the

researcher relied on students to self-report their attitudes and

perceptions as accurately as possible. Finally, though a multi-

institutional and longitudinal study would provide the greatest

breadth and depth of data, this study is restricted to one

institution and one academic year.

By analyzing the history of India integrating with the world

business and economy during the last about 60 years, 1947-2004,

this paper attempts to explain the overall globalization process

and provide the meaning, genesis and characteristics of

globalization with respect to India.


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OBJECTIVES

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Primary Objective

The primary objective of the study is to find out the impacts of

globalization that how globalization is affecting our economy or

nation, i.e. India whether it has positive effects on our economy orits negatively affecting our economy.

Secondary Objective

The secondary objectives if conducting this study are as follows:

To know the thinking of people about the Globalization

To know globalizations effects on employment

To make the people more aware about globalization


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NEED

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The need for conducting this research arises because there is

need to make the people aware about the meaning of

globalization and make clear how globalization is affecting them

and also our economy. Globalization have both positive effects, i.e.

Transfer of capital, Increased Employment, Technology Transfer,

Opportunity to create a cross-culture workings, etc. and negative

effects, i.e. Transfer of Diseases, Global Warming, etc. So there is a

need to know that whether the globalization is resulting in

positive results or negative results more, therefore, for this

purpose this study on globalizations impacts have been

conducted.


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SCOPE

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This study, in future can help in conducting other studies related

to any other matters about globalization. This study can also be

used to design the globalization policies or to modify them

because this study also serves the opinions of different people

about globalization and its impacts on the Indias economic

situations/conditions.

There is one more important thing that this

study makes the meaning of globalization clear very efficiently

which can help anybody or any other researcher to make his and

others view about globalization clear.


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RESEARCH METHODOLOGY

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The following research is a descriptive kind of research and

conducted by taking a sample of 30 people from general public.

The sample units are taken by using random sampling technique,

i.e. sample units are taken randomly from general public. The

sample size is taken as 30 due to convenience of researcher. The

questionnaire has been made containing questions regarding

impact of globalization and people are asked to fill it. The

questionnaire is filled by conducting face to face interaction.


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DATA ANALYSIS

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Q.1 What do you think Globalization is?

Ans:

Import-

Export

Widening the

market

Private

sectorinvolvement

Total

No. ofRespondents

4 17 9 30

Q.2 Globalization carries lots of risks.

Ans:

StronglyAgree

Agree Neutral Disagree StronglyDisagree

Total

No. of

Respondents

4 10 9 6 1 30

Q.3 Globalization creates wealth.

Ans:

StronglyAgree


Total

No. of

Respondents

12 14 1 3 0 30

Q.4 Globalization threatens jobs.

Ans:

StronglyAgree


Total

No. of

Respondents

2 5 7 14 2 30

Q.5 Globalization offers opportunities.


26/37

DATA ANALYSIS

26

Ans:

Strongly

Agree

Agree Neutral Disagree Strongly

Disagree

Total

No. of

Respondents

14 9 3 4 0 30

Q.6 Globalization affects culture.

Ans:

Strongly

Agree


Disagree

Total

No. of

Respondents

6 15 7 1 1 30

Q.7 Globalization plays a central role.

Ans:

Strongly

Agree


Disagree

Total

No. of

Respondents

1 9 11 6 3 30

Q.8 Globalization is Americanization.

Ans:

Strongly

Agree


Disagree

Total

No. of

Respondents

1 8 9 7 5 30

Q.9 Globalization acts as a bridge between nations.

Ans:


27/37

DATA ANALYSIS

27

Strongly

Agree


Disagree

Total

No. of

Respondents

16 12 1 1 0 30

Q.10 If there are two products, one is local (Indian) and other one

is Imported, which one will you prefer?

Ans:

Indian Imported Total

No. of

Respondents

22 8 30

Q.11 Do you think globalization leads to reduction in salaries of

Indian people?

Ans:

Yes No Total

No. ofRespondents 9 21 30

Q.12 I like food from other cultures & countries.

Ans:

Strongly

Agree


Disagree

Total

No. ofRespondents 3 12 9 4 2 30


28/37


29/37

FINDINGS OFTHE RESEARCH

29

According to the majority of people, i.e. almost 73% people dont

think that globalization leads to reduction in salaries of Indian

people.

Half of the people likes the culture of other countries and theirfood, it means they are happy with the globalization policy.

At the end all the people thinks that the overall effect of

globalization is positive because they have said that it transfer the

technology and increase the employment and the weightage given

by them to the negative effects is low so we can say that

globalization leads to positive effects more rather than negative

ones.


30/37

LIMITATIONS

30

Following are the difficulties/limitations occurred in conducting

this study:

Educated people having the knowledge of globalization werequiet difficult to figure out.

Questions were a little bit confusing for the respondents.

Time constraints were there, i.e. there was less time toconduct a study.

Some of the respondents were not seriously filling thequestionnaire.


31/37

CONCLUSION

31

In this study, we were finding the impact of globalization and

seeing that what was the general peoples thinking about the

globalization and in what manner globalization was effecting

them? So at the end the study have concluded that most of the

people are aware of globalization and its impact on the Indian

economy and on themselves as well.

People think that globalization offers

opportunities but its not increasing the employment.

Globalization creates wealth also. People think that globalization

acts as a bridge between nations, i.e. all the nations can works as a

team and earn more profits.

Globalization results in trade expansion,

increased direct foreign investment, supports multilateral trading

system, technology transfer, etc.

So as an overall the impacts of globalization,

according to the peoples point of view, are positive. Negative

effects are less than the positive ones.


32/37

ANNEXURES

32

QUESTIONNAIRE

Name: ____________________________________________ _______________________

Age: ______________________________________________ _______________________

Sex: ______________________________________________ ________________________

Occupation: ________________________________________ _____________________

Q.1 What do you think Globalization is?

Ans. (a) Import-Export

(b) Widening the market

(c) Private sector involvement

Q.2 Globalization carries lots of risks.

Ans. (a) Strongly Agree

(b) Agree

(c) Neutral

(d) Disagree

(e) Strongly Disagree

Q.3 Globalization creates wealth.


(b) Agree


33/37

ANNEXURES

33

(c) Neutral

(d) Disagree


Q.4 Globalization threatens jobs.


(b) Agree

(c) Neutral

(d) Disagree


Q.5 Globalization offers opportunities.


(b) Agree

(c) Neutral

(d) Disagree


Q.6 Globalization affects culture.


(b) Agree

(c) Neutral


34/37

ANNEXURES

34

(d) Disagree


Q.7 Globalization plays a central role.


(b) Agree

(c) Neutral

(d) Disagree


Q.8 Globalization is Americanization.


(b) Agree

(c) Neutral

(d) Disagree


Q.9 Globalization acts as a bridge between nations.


(b) Agree

(c) Neutral

(d) Disagree


35/37

ANNEXURES

35


Q.10 If there are two products, one is manufactured within the

India and other one is manufactured abroad (Imported), which

one will you prefer?

Ans. (a) Indian

(b) Imported

If you have selected second one then how more will you pay

for it?

(a) 20 percent

(b) 10 percent

(c) 5 percent

(d) not a penny more

Q.11 Do you think that globalization results in the reduction in the

salaries of Indian people and threaten their jobs.

Ans. (a) Yes

(b) No

Q.12 I like food from other cultures & countries.


(b) Agree

(c) Neutral


36/37

ANNEXURES

36

(d) Disagree


Q.13 So as an overall, whats your opinion that Globalization

results in :( Rank Accordingly, mark a circle on the rank)

Ans. Positive Effects

Increased Employment 1 2 3 4 5

Technology Transfer 1 2 3 4 5

Transfer of Capital 1 2 3 4 5

Negative Effects

Global Warming 1 2 3 4 5

Transfer of Diseases 1 2 3 4 5


37/37

BIBLIOGRAPHY

References has been taken to conduct this study from the

following studies previously conducted:

Globalization Survey 2005 by EPICORImpact of Globalization on Developing Countries (WithSpecial Reference to India) by Krishn A GoyalDoes Globalization Cause Inequity among Rich and Poor

Nations by M. Stephen Lucas

Indias Globalization: Evaluating the economic consequencesby Baldev Raj Nayar

Globalization & its impactsGlobalization, Growth & Poverty by N.R.

Bhanumurthy&A.Mitra, April 2006

Globalization Process in India: A Historical Perspective SinceIndependence, 1947 by Amar K J R Nayak,

KalyanChakravarti&PrabinaRajib

Examining Students perception of Globalization & Studyabroad programs at HBCUs by Stevon Walker, James O.

Bukenya& Terrence Thomas

What Do You Think? A Globalization Survey

Following websites also helped a lot

www.google.comwww.bing.com

globalization (kamaljit singh , 104682276244)16

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