Investigate the impact of globalisation on an economy other than Australia
The term, ‘globalisation’ refers to the breaking down of barriers between nations, resulting in greater integration and an increased impact of international influences on all aspects of life and economic activity. The dramatic impact of globalization is able to be observed in India, as their economic liberalisation in 1991 led to their drastic rise in economic growth and prosperity. Through globalization, India has become a major powerhouse regarding their economy and is continuing to grow as the world’s fastest growing major economy.
The Indian economy is the world’s 6th largest economy by nominal GDP (2016) and is the fastest growing major economy in the world. Due to their extreme economic growth (6.30% as of September 2017), India is expected to be within the
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Through advocating the importance of self-sufficiency, India’s involvement with the global economy was minuscule, with their inflow of foreign investment mainly in the form of borrowing at times of necessity. The five-year plan of 1956-61 heavily focused on the rapid industrialisation of India, leading to large loans and imports from foreign investments in an attempt to fulfill their goal. Consequently, due to their limitations on foreign direct investment and the complex bureaucratic process in India’s closed economy, these imports and loans were not effective in improving the quality of life within the nation, as well as their economic state, with the population succumbing to bribes in order to avoid the tedious bureaucratic process. This in turn, crippled economic growth and due to India’s protective market, the population were bound to poor quality goods and services, being sold at high
Globalisation, in the simplest sense, is economic integration between countries and is represented by the fact that national resources are now becoming mobile in the international market. Globalisation sees: an increase in trade of goods & services through the reduction of trade barriers; an increase in financial flows through the deregulation of financial institutions and markets and floating of currency; an increase in labour
... British had colonized India for approximately 200 years, there were lasting effects on the country in terms of many sectors, specifically the economical and industrial sectors. Due to India’s non-participation and manipulation of agriculture by the British, some would argue that the British obliterated the economy. Others would argue that the British instead helped due to the creation of the railroad, improved communication and created the beginnings of an industry. The British harmed the economy and industrial sector more than they helped it, and effectively caused the destruction of the economy both in the short term and the long term. The growth rate directly after the independence was less than 1% for almost 5 years (BIC 4). It was necessary for India to rebuild the economy if they ever wanted to be on the same playing field as the other countries at the time.
Though the world economy as a whole has grown in recent years, a factor that is not taken into account is that the number “of the poor in the world has increased by 100 million” (Roy 3). In other words, the gap between rich and poor is widening. For India, this has startling implications. Though it is a nation that is developing in many ways, it also is a nation blessed with over one billion citizens, a population tally that continues to grow at a rapid rate. This population increase will greatly tax resources, which can create a setback in the development process. The tragedy, of course, is that the world is full of resources and wealth. In fact, Roy quotes a statistic showing that corporations, and not even just countries, represent 51 of the 100 largest economies in the world (Roy 3). For a country struggling to develop, such information is disheartening. However, there is also a more nefarious consequence of the growing disparity between rich and poor, and power and money being concentrated in the hands of multinational corporations: war is propagated in the name of resource acquisition, and corruption can reign as multinationals seek confederates in developing countries that will help companies drive through their plans, resulting in not only environmental destruction but also the subversion of democracy (Roy 3).
Wilson, Beth Anne, & Keim, Geoffrey N. (2006). India and the Global Economy. Business Economics, 41(1), 28-36.
Globalization becomes important today because increasing in depending to the world. Globalization can be determined as increasing in trade and exchange in open economy, integrated and borderless international economy (Intriligator, 2003). Globalization is often used to refer to economic globalization. The integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Besides that, globalization also can be defined as process of greater interdependence among countries and their citizens. It consists of increased integration of product and resource markets across nations via trade, immigration and foreign investment-that is via international flows of goods and services, of people and of investment such as equipment, factories, stocks and bonds. It also includes non-economic elements such as culture and the environment.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
Subramanian, Arvind. India’s Economy is stumbling? The New York Times. August 31, 2013: A19. Print.
...an HDI of 0.36. These discrepancies in levels of development have led to an exodus of people, from less developed areas to the areas that have been benefitted by development. This situation seems to depict that predicted by the Dependency theory in which the developed countries progressed due to the exploitation of peripheral nations; the same seems to be happening in India. The states that are wealthier are exploiting the poorer states. It would be difficult to imagine India having the economic status that it now has, if it was not for the terrible working conditions and wages at which the Indians are willing to work and the massive work force available in the country. Now that India has seen economic growth the government should start taking care of its citizens by implementing policies that protect the labor rights of the workforce.
4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
India's strategy for development has had many critics. It was pointed out that the emphasis on heavy industry
Globalization is associated with bringing together world economies and cultures. Globalization is a controvertible conception. This allows powerful corporation change local enterprises and in the future make the gaps big between, rich people and poor people. The benefits of an international market to integrated where labour, ideas, capital and goods can be free and to promote the economic development all of the levels in the society. Globalization is a process to interact and integrate among companies, people and the governments of other nations. Globalization is process which international organization, corporations, individuals and communities has become more interconnected with politics, cultures and the earths environment. “It is characterized
We must avoid the temptation if at any given time our individual national economy is more prosperous than those of our other partner states, to be so arrogant as to forget that our economic situation may be suddenly reversed and that therefore we will soon need close links with our partner states in matters concerning both the intra-regional and extra-regional spheres. West Indian history abounds with instances of countries suffering sudden reversals of their economic fortunes.
The domestic businesses as well as international businesses face cut throat competition to enter and survive in the Indian market. They can survive only through customer satisfaction and providing high quality products. The increased foreign direct investment in India has supplemented the domestic capital formation and has improved the balance of payment. Banking, Insurance, communication, transportation, telecommunication, tourism, healthcare, education, consultancy, BPO and other service sectors contribute more than half of the national income in India. As a member of WTO India will reduce the tariff and non-tariff barriers and reduce and repay the foreign debt. Indian business environment is committed to the Indian economy through promoting increased living standards of the people in India. The world economy witnessed recession in the year 2008-09. The stability of the banks and financial institutions was questioned. India’s export sector, inflow of foreign investment, employment opportunities, capital markets, domestic demand of capital and consumer goods were affected due to economic slowdown. But the Indian private and public houses have struggled a lot to bring the Indian economy in the better position again. It is a fact that the Indian business environment is in much better position now and the Indian economy is growing at pace now.
Globalisation is a very complex term with various definitions, in business terms, “globalization describes the increasingly global nature of markets, the tendency for transnational businesses to configure their business activities on a worldwide basis, and to co-ordinate and integrate their strategies and operations across national boundaries” (Stonehouse, Campbell, Hamill and Purdie, 2004, p. 5).
According to economic survey 2014 , India ranked 12th in terms of services Gross Domestic Product (GDP) in 2012 among the world's top 15 countries in terms of GDP. While services share in India was 56.9 per cent only employing 28.1 per cent people. On the other hand, the manufacturing and services activities which are contributing more than 85 per cent to GDP and getting a lion’s share of total capital formation are employing less than half of the total workforce. The higher growth and capital formation in the above two sectors have failed to transfer the workforce from low productive activities (agricultural and allied) to high productive activities (manufacturing and