Globalization | meaning of globalization


In today's world there are several alternative of goods and services available to a consumer. The latest models of camera mobile phones and television sets produced in the developed countries of the world are available at very cheap prices. Some years ago only Ambassador and Fait cars were seen on the INDIAN roads. But today car made by many companies of the world are available in India. This situation is not true for cars only but things like clothes of different countries, fruits, tinned food etc. are also available in Indian markets. Here this fact is worth quoting that these varieties of goods manufactured within the country were only available to us.
                       The reality is this that today the foregin trade has linked all the countries of the world together. There are several big companies of the world, which are called 'multinamultina company'; they sell their products in several countries of the world. This is noticeable here that a multinational company is that which produces goods in more than one country. These companies produce goods on large scale and sell these produced goods in several countries.

      Meaning of globalisation

           Due to growing foreign trade the markets of different countries and the goods sold in them have been unified. The growing trend of foreign trade has now brought the markets of different countries close to each other. The advance technology has played a very significant role in this closeness and has changed the whole world into a big village. This s globalisation, where markets of different countries work together in the form of a unit.

                 Thus by globalisation is meant the working of whole world together with cooperation and coordination in the form of a market. Under the process of globalisation the restrictions on the inflow and outflow of goods and services from one country to another are withdraw. Thereby the market prices start operating freely in whole of the world. As a result the prices in all the countries become near about uniform. In this way as a result of globalisation all the markets of the world are unified .
                Therefore it can be said that globalisation is a process under which all the business activities are internationalised and they start working in the form of a unit. 

                    Factors inspiring                             globalosation

     (1) Expansion of Technical knowledge - During last 50years the technical knowledge has developed rapidly. The transport technology has made it possible to send goods to distant places at lower cost. The tele-communication facilities such as Internet, mobile phone, fax etc. has made the task of connecting people with each other throughout the world very easy. The communication satellite has brought a revolutionary change by expanding these facilities. As a result globalisation has expanded rapidly.

       (2) Process of liberalisation- Till the middle of twentieth century the production was limited mainly within the boundaries of the countries. So many countries imposed strict restrictions to protect the goods produced by them from competition. India also during the decades of 1950 and 1960 has permitted only imports of necessary goods as policy and India became self-reliant in several sectors.
                  But during the decades, 1970 and 1990 some such changcha took place due to which began the process of liberalisation of foreign trade. For example disintegration of Union of Soviet Socialist Republic (Russia), economic unification of Europe, emergence of Japan as a major power of the world and economic development of Korea, Singapore and Hangokong. As result several countries agreed to liberalise 'The World Trade Organization' in 199, almost all the countries of the world have reduced their taxes on imports and have opened the markets of their countries for others countries.

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