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Presented by:
Kunal30Mohan 28Disha29Sunil - 31Mindo32
Pros & Cons ofGlobalization
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Globalization refers to the integration ofeconomics and societies all over the world.
It simply means making the economy moreopen rather than remains as closed.
Globalization involves technological, economic,
political, and cultural exchanges made possiblelargely by advances in communication,transportation, and infrastructure.
Meaning of Globalization
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Globalization is
Globalization, reminds us about the death of Princess Diana.Her death is claimed to be a symbol of globalization.
How?
The reason that her car accident is highly globalized:
She is an English princess with an Egyptian boyfriend
Crashes in a French tunnel, Driving a German car with a Dutch engine, Driven by a Belgian who was drunk on Scottish whisky, Followed closely by Italian Paparazzi,
On Japanese motorcycles, treated by an American doctor,
Using Brazilian medicines. Were reading on this computer using Bill Gates's technology, that uses
Taiwanese chips, And a Korean monitor, assembled by Bangladeshi workers in a
Singapore plant,
Which is Transported by Indian lorry-drivers.THATS GLOBALIZATION!!!
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Globalization features
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War & Globalization
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The beginning of Globalization
An American entrepreneur-turned-minister Charles TazzRussell first coined the term 'corporate giants' in 1897.
The first era of globalization (in the fullest sense) during the19th century was the rapid growth of international tradebetween the European imperial powers, the Europeancolonies, and the United States.
The word "globalization" has been used by economists since1981.
After World War II, globalization was restarted and since 1990sit was driven by major advances in technology, communicationsand trade
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Globalization In India
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Beginning of globalization in India
In June of 1991, when the current Prime Minister Dr. ManmohanSingh was the Finance Minister (and Mr. Narasimha Rao was the PrimeMinister), country received first significant shock of globalization andliberalization
The idea behind the new economic model known as Liberalization,
Privatization and Globalization in India (LPG), was to make the Indianeconomy one of the fastest growing economies in the world.
It implies that the reduction in trade barriers (i.e. tariffs andquotas) to permit free flow of goods and services across the world
Showed quick and efficient recovery from the acutemacroeconomic crisis of 1991
It appeared that policy makers by 1995 were convinced thatglobalization is what is needed for faster economic growth.
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Devaluation: To solve the balance of payment problem Indiancurrency were devaluated by 18 to 19%.
Disinvestment: To make the LPG model smooth many of the publicsectors were sold to the private sector.
Allowing Foreign Direct Investment (FDI): FDI was allowed in a widerange ofsectors such as Insurance (26%), defense industries (26%) etc.
NRI Scheme: The facilities which were available to foreign investorswere also given to NRI's.
Removal of quantitative restriction on import
Reduction of peak custom tariff from 300% to 30%
Dismantling of Industrial licensing.
Some of the Steps taken to Globalize The Indian Economy
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India Trade 1991 - 2010
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Growth of Indian Economy
Formation of new economic reform known as LPGmodel
Increase in investments by foreign investors and
companies.
India on 4th rank for market capitalization.
New fiscal policies and budgets in favor of foreign
investors and companies.
Worth of textile, retail, banking, IT and financeindustries increases rapidly
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Foreign Investment Inflows
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Merits due to globalization in India
GDP has increased Current 8.3%
Exports have boomed
Incidence of poverty has been reduced
Begging by India for economic aids has stopped up to some extent
Fall in the inflation rate (Current 9.06%)
Scarcity of goods have disappeared
Quality of products have improved
Progressively vibrant & internationally competitive
Better technological development
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FDI Share of Top Investing countries in India
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Demerits due to globalization in India
Rise in demand for labor
Voluntary retirement for many public sector units.
Too many sales person chasing customers.
Too many cars on the road
Excessive power and infrastructure affecting industrial expansion.
Increased competition between the foreign companies and domesticcompanies
With the foreign goods being better than the Indian goods, theconsumer preferred to buy the foreign goods.
Due to advancement in technology many semi-skilled & unskilledlabourers being removed from their jobs.
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Positive effects for the world
For consumers there is a wider range of products to choose from.
Increase in flow of investments, which can be used for economicreconstruction.
Greater and faster flow of information between countries
Imported goods are available
There is a feeling of an international economy
Local industries work hard to compete with international firms, whichresults in overall economic development of a country
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Negative effects for the world
Local industries get dislodged. There is political interference and conflicts arise
Underlying threat of multinational corporations with immensepower ruling the globe.
Intense Competition
Widening of Gap between rich and poor countries
Difficult for smaller industries to establish themselves
Exploitation of workers
Due to outsourcing it has resulted in loss of jobs in developed countries.
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Globalization
Who Benefits Who Doesnt
Corporations Poor People
Smart people who invent Non-Technical people
Establish Large companies Labourers/Workers
Communists Govt. like China Small & Medium Firms
Developed & Developingcountries Environment
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Should we de-globalize???
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ConclusionGlobalization is Here To Stay!!
Globalization does have problems & negative effects, but it willnot disappear & is inevitable
We need to learn how to reap its benefits and minimize the cost
and save the environment.
To accomplish this we must do:
Understand its impacts
Work to remedy its problems
Protect global warming
Govt. should implement policies that support globalization and are
beneficial to the nation.
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Thank You!