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    INTODUCTION

    MEANING OF GLOBALISATION

    DIMENSIONS OF GLOBALISATION

    MODERN GLOBALISATION

    DEVELOPMENT SUPPORT GLOBALISATION

    MENIFESTATION OF GLOBALISATION

    MEASURING GLOBALISATION

    GAINS OF GLOBALISATION

    EFFECT OF GLOBALISATION

    PROBLEMS OF GLOBALISATION

    PICTORIAL ILLUSTRATION

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    BIBLOGRAPHY

    INTRODUCTION

    The term " globalization " has been used by economists since the 1980salthough it was used in social sciences in the 1960s; however, its conceptsdid not become popular until the latter half of the 1980s and 1990s. Theearliest written theoretical concepts of globalization were penned by anAmerican entrepreneur-turned-minister Charles Taze Russell who coined theterm 'corporate giants' in 1897. [7] Globalization is viewed as a centuries long

    process, tracking the expansion of human population and the growth of civilization , that has accelerated dramatically in the past 50 years. Earlyforms of globalization existed during the Roman Empire , the Parthian empire, and the Han Dynasty , when the Silk Road started in China, reachedthe boundaries of the Parthian empire, and continued onwards towardsRome. The Islamic Golden Age is also an example, when Muslim traders and explorers established an early global economy across the Old World

    resulting in a globalization of crops , trade, knowledge and technology; andlater during the Mongol Empire , when there was greater integration alongthe Silk Road . Globalization in a wider context began shortly before the turnof the 16th century, with two Kingdoms of the Iberian Peninsula - theKingdom of Portugal and the Kingdom of Castile . Portugal' s globalexplorations in the 16th century, especially, linked continents, economiesand cultures to a massive extent. Portugal's exploration and trade with mostof the coast of Africa and the territory of India was the first major trade

    based form of globalisation. A wave of global trade , colonization , andenculturation reached all corners of the world. Global integration continuedthrough the expansion of European trade in the 16th and 17th centuries,when the Portuguese and Spanish Empires colonized the Americas , followedeventually by France and Britain. Globalization has had a tremendousimpact on cultures , particularly indigenous cultures, around the world. In the17th century, globalization became a business phenomenon when the British East India Company , which is often described as the first multinational

    http://en.wikipedia.org/wiki/Charles_Taze_Russellhttp://en.wikipedia.org/wiki/Globalisation#cite_note-6http://en.wikipedia.org/wiki/Human_populationhttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Parthianhttp://en.wikipedia.org/wiki/Han_Dynastyhttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Islamic_Golden_Age#Economyhttp://en.wikipedia.org/wiki/Islamic_Golden_Age#Age_of_discoveryhttp://en.wikipedia.org/wiki/Global_economyhttp://en.wikipedia.org/wiki/Old_Worldhttp://en.wikipedia.org/wiki/Muslim_Agricultural_Revolutionhttp://en.wikipedia.org/wiki/Mongol_Empirehttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Iberian_Peninsulahttp://en.wikipedia.org/wiki/Kingdom_of_Portugalhttp://en.wikipedia.org/wiki/Kingdom_of_Castilehttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/Global_tradehttp://en.wikipedia.org/wiki/Colonizationhttp://en.wikipedia.org/wiki/Enculturationhttp://en.wikipedia.org/wiki/Portuguese_Empirehttp://en.wikipedia.org/wiki/Spanish_Empirehttp://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/Transformation_of_culturehttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Globalisation#cite_note-6http://en.wikipedia.org/wiki/Human_populationhttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Parthianhttp://en.wikipedia.org/wiki/Han_Dynastyhttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Islamic_Golden_Age#Economyhttp://en.wikipedia.org/wiki/Islamic_Golden_Age#Age_of_discoveryhttp://en.wikipedia.org/wiki/Global_economyhttp://en.wikipedia.org/wiki/Old_Worldhttp://en.wikipedia.org/wiki/Muslim_Agricultural_Revolutionhttp://en.wikipedia.org/wiki/Mongol_Empirehttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Iberian_Peninsulahttp://en.wikipedia.org/wiki/Kingdom_of_Portugalhttp://en.wikipedia.org/wiki/Kingdom_of_Castilehttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/Global_tradehttp://en.wikipedia.org/wiki/Colonizationhttp://en.wikipedia.org/wiki/Enculturationhttp://en.wikipedia.org/wiki/Portuguese_Empirehttp://en.wikipedia.org/wiki/Spanish_Empirehttp://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/Transformation_of_culturehttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Charles_Taze_Russell
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    corporation , was established. Because of the high risks involved withinternational trade, the British East India Company became the firstcompany in the world to share risk and enable joint ownership of companiesthrough the issuance of shares of stock: an important driver for globalization. Globalisation was achieved by the British Empire (the largestempire in history) due to its sheer size and power. British ideals and culturewere imposed on other nations during this period. The 19th century issometimes called "The First Era of Globalization." It was a periodcharacterized by rapid growth in international trade and investment betweenthe European imperial powers, their colonies, and, later, the United States. Itwas in this period that areas of sub-saharan Africa and the Island Pacificwere incorporated into the world system.

    The term globalisation was used by Theodore Levitt in an article he wrote 20

    years ago in the Harvard Business Review . He used it in a limited sense as a synonym for standardization of a brand for international markets. Interms of quality, appearance, and every other factor governing the product, itwill correspond to identical standards in whichever part of the world it may

    be manufactured or marketed by the parent company, or its franchisee.

    Today, the word has acquired a much wider connotation and significance.The International Monetary Fund has defined globalization as "the growinginterdependence of countries worldwide through the increasing volume andvariety of cross-border transactions in goods and services, and of international capital flows, and also, through the more rapid and widespreaddiffusion of technology."

    http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/British_Empirehttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/British_Empire
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    MEANING OF GLOBALISATION

    Globalisation, also called as internationalization, means several things toseveral people. For some it is new paradigm a set of fresh beliefs, workingmethods and economic, political and socio culture realities in which the

    previous assumptions are no longer valid. For developing countries, it meansintegration with the world economy. In the simple economic terms,globalization refers to the process of integration with the world economy. Insimple economic terms, globalization refers to the process of integration of the world into one huge market. Such unification calls for the removal of alltrade barriers among countries. Even political and geographical barriers

    become irrelevant.

    At the company level, globasitation means two things (a) the companycommits itself heavily with several manufacturing locations around the

    world and offers products in several diversified industries. (b) it means theability to compete in domestic markets with foreign competitors. In the

    popular sense, globalization refers mainly to multi-plant operations.

    A company which has gone global is called a multinational corporation(MNC). An MNC is, therefore, one that, by operating in more than onecountry, gains through Research and Development, leading to substantial

    production, marketing and financial advantages in its costs and reputationthat are not available to purely domestic competitors. The global views theworld market as one market, minimizes the importance of national

    boundaries, raises capital and markets wherever it can do the job best.

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    MODERN GLOBALISATION

    Globalization, since World War II, is largely the result of planning byeconomists, business interests, and politicians who recognized the costsassociated with protectionism and declining international economicintegration. Their work led to the Bretton Woods conference and thefounding of several international institutions intended to oversee the

    renewed processes of globalization, promoting growth and managingadverse consequences.

    These institutions include the International Bank for Reconstruction andDevelopment (the World Bank ), and the International Monetary Fund .Globalization has been facilitated by advances in technology which havereduced the costs of trade, and trade negotiation rounds, originally under theauspices of the General Agreement on Tariffs and Trade (GATT), which ledto a series of agreements to remove restrictions on free trade .

    Since World War II, barriers to international trade have been considerablylowered through international agreements - GATT. Particular initiativescarried out as a result of GATT and the World Trade Organization (WTO),for which GATT is the foundation, have included:

    Promotion of free trade:o Reduction or elimination of tariffs ; creation of free trade zones

    with small or no tariffso Reduced transportation costs, especially resulting from

    development of containerization for ocean shipping.o Reduction or elimination of capital controls o Reduction, elimination, or harmonization of subsidies for local

    businesses Restriction of free trade:

    o Harmonization of intellectual property laws across the majorityof states, with more restrictions.

    http://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Bretton_Woods_conferencehttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Free_trade_zonehttp://en.wikipedia.org/wiki/Containerizationhttp://en.wikipedia.org/wiki/Capital_controlshttp://en.wikipedia.org/wiki/Subsidyhttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Bretton_Woods_conferencehttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Free_trade_zonehttp://en.wikipedia.org/wiki/Containerizationhttp://en.wikipedia.org/wiki/Capital_controlshttp://en.wikipedia.org/wiki/Subsidyhttp://en.wikipedia.org/wiki/Intellectual_property
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    MEASURING GLOBALISATION

    Globalization has had an impact on different cultures around the world.

    Japanese McDonald's fast food as an evidence of international integration.

    Looking specifically at economic globalization, demonstrates that it can bemeasured in different ways. These center around the four main economicflows that characterize globalization:

    http://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Image:Mac_Japan.jpghttp://en.wikipedia.org/wiki/Image:Hksycss.jpghttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Fast_food
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    Goods and services, e.g. exports plus imports as a proportion of national income or per capita of population

    Labor/people, e.g. net migration rates; inward or outward migrationflows, weighted by population

    Capital, e.g. inward or outward direct investment as a proportion of national income or per head of population

    Technology, e.g. international research & development flows; proportion of populations (and rates of change thereof) using particular inventions (especially 'factor-neutral' technologicaladvances such as the telephone, motorcar, broadband)

    As globalization is not only an economic phenomenon, a multivariateapproach to measuring globalization is the recent index calculated by theSwiss think tank KOF. The index measures the three main dimensions of

    globalization: economic, social, and political. In addition to three indicesmeasuring these dimensions, an overall index of globalization and sub-indices referring to actual economic flows, economic restrictions, data on

    personal contact, data on information flows, and data on cultural proximityis calculated. Data is available on a yearly basis for 122 countries, asdetailed in Dreher, Gaston and Martens (2008). According to the index, theworld's most globalized country is Belgium , followed by Austria , Sweden ,the United Kingdom and the Netherlands . The least globalized countriesaccording to the KOF-index are Haiti , Myanmar the Central AfricanRepublic and Burundi .

    A.T. Kearney and Foreign Policy Magazine jointly publish another Globalization Index . According to the 2006 index, Singapore , Ireland ,Switzerland , the U.S., the Netherlands , Canada and Denmark are the mostglobalized, while Indonesia , India and Iran are the least globalized amongcountries listed.

    http://en.wikipedia.org/wiki/Globalization_Indexhttp://en.wikipedia.org/wiki/Think_tankhttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Haitihttp://en.wikipedia.org/wiki/Myanmarhttp://en.wikipedia.org/wiki/Central_African_Republichttp://en.wikipedia.org/wiki/Central_African_Republichttp://en.wikipedia.org/wiki/Burundihttp://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Foreign_Policyhttp://en.wikipedia.org/wiki/Globalization_Indexhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Republic_of_Irelandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Globalization_Indexhttp://en.wikipedia.org/wiki/Think_tankhttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Haitihttp://en.wikipedia.org/wiki/Myanmarhttp://en.wikipedia.org/wiki/Central_African_Republichttp://en.wikipedia.org/wiki/Central_African_Republichttp://en.wikipedia.org/wiki/Burundihttp://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Foreign_Policyhttp://en.wikipedia.org/wiki/Globalization_Indexhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Republic_of_Irelandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Iran
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    EFFECTS OF GLOBALISATION

    Globalization has various aspects which affect the world in several different

    ways such as:

    Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies.Particularly movement of material and goods between and withinnational boundaries.

    Financial - emergence of worldwide financial markets and better access to external financing for borrowers. Simultaneous though notnecessarily purely globalist is the emergence of under or un-regulatedforeign exchange and speculative markets.

    Economic - realization of a global common market, based on thefreedom of exchange of goods and capital.

    Political - some use "globalization" to mean the creation of a worldgovernment, or cartels of governments (e.g. WTO, World Bank, and

    IMF) which regulate the relationships among governments andguarantees the rights arising from social and economic globalization.Politically, the United States has enjoyed a position of power amongthe world powers; in part because of its strong and wealthy economy.With the influence of globalization and with the help of The UnitedStates own economy, the People's Republic of China has experiencedsome tremendous growth within the past decade. If China continues togrow at the rate projected by the trends, then it is very likely that inthe next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry,and technology to rival the United States for the position of leadingworld power.

    Informational - increase in information flows between geographicallyremote locations. Arguably this is a technological change with theadvent of fibre optic communications, satellites, and increasedavailability of telephony and Internet .

    http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Internet
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    Language - the most popular language is English.o About 75% of the world's mail, telexes, and cables are in

    English.o Approximately 60% of the world's radio programs are in

    English.o About 90% of all Internet traffic is using English.

    Competition - Survival in the new global business market calls for improved productivity and increased competition. Due to the market

    became worldwide not specific area, there are many industries aroundthe world. Industries have to upgrade their products and usetechnology skillfully for facing the competition and increasing their competitive.

    Cultural - growth of cross-cultural contacts; advent of new categoriesof consciousness and identities which embodies cultural diffusion, the

    desire to increase one's standard of living and enjoy foreign productsand ideas, adopt new technology and practices, and participate in a"world culture". Some bemoan the resulting consumerism and loss of languages. Also see Transformation of culture .

    Ecological - the advent of global environmental challenges that might be solved with international cooperation, such as climate change ,cross-boundary water and air pollution, over-fishing of the ocean, andthe spread of invasive species. Since many factories are built indeveloping countries with less environmental regulation, globalismand free trade may increase pollution. On the other hand, economicdevelopment historically required a "dirty" industrial stage, and it isargued that developing countries should not, via regulation, be

    prohibited from increasing their standard of living. Social (International cultural exchange ) - increased circulation by

    people of all nations with fewer restrictions.o Spreading of multiculturalism , and better individual access to

    cultural diversity (e.g. through the export of Hollywood andBollywood movies). Some consider such "imported" culture adanger, since it may supplant the local culture, causing

    reduction in diversity or even assimilation . Others consider multiculturalism to promote peace and understanding between

    peoples.o Greater international travel and tourism o Greater immigration , including illegal immigration o Spread of local consumer products (e.g. food) to other countries

    (often adapted to their culture).

    http://en.wikipedia.org/wiki/Consciousnesshttp://en.wikipedia.org/wiki/Consumerismhttp://en.wikipedia.org/wiki/Transformation_of_culturehttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Multiculturalismhttp://en.wikipedia.org/wiki/Cultural_diversityhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Cultural_assimilationhttp://en.wikipedia.org/wiki/Travelhttp://en.wikipedia.org/wiki/Tourismhttp://en.wikipedia.org/wiki/Immigrationhttp://en.wikipedia.org/wiki/Illegal_immigrationhttp://en.wikipedia.org/wiki/Consciousnesshttp://en.wikipedia.org/wiki/Consumerismhttp://en.wikipedia.org/wiki/Transformation_of_culturehttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Multiculturalismhttp://en.wikipedia.org/wiki/Cultural_diversityhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Cultural_assimilationhttp://en.wikipedia.org/wiki/Travelhttp://en.wikipedia.org/wiki/Tourismhttp://en.wikipedia.org/wiki/Immigrationhttp://en.wikipedia.org/wiki/Illegal_immigration
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    o World-wide fads and pop culture such as Pokmon , Sudoku , Numa Numa , Origami , Idol series , YouTube , Orkut , Facebook ,and MySpace . Accessible to those who have Internet or Television, leaving out a substantial segment of the Earth's

    population.o World-wide sporting events such as FIFA World Cup and the

    Olympic Games .o Incorporation of multinational corporations in to new media. As

    the sponsors of the All-Blacks rugby team, Adidas had created a parallel website with a downloadable interactive rugby gamefor its fans to play and compete.

    Technical o Development of a global telecommunications infrastructure and

    greater transborder data flow, using such technologies as theInternet , communication satellites , submarine fiber optic cable ,and wireless telephones

    o Increase in the number of standards applied globally; e.g.copyright laws , patents and world trade agreements.

    Legal/Ethical o The creation of the international criminal court and

    international justice movements .o Crime importation and raising awareness of global crime-

    fighting efforts and cooperation.

    Whilst it is all too easy to look at the positive aspects of Globalization andthe great benefits that are apparent everywhere, there are also severalnegative occurrences that can only be the result of or major motivatingfactors that inspire some corporations to globalize.

    Globalization the growing integration of economies and societies aroundthe world has been one of the most hotly-debated topics in internationaleconomics over the past 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 globalization. But globalization has also generatedsignificant international opposition over concerns that it has increasedinequality and environmental degradation.

    Sweatshops

    http://en.wikipedia.org/wiki/Pok?monhttp://en.wikipedia.org/wiki/Sudokuhttp://en.wikipedia.org/wiki/Numa_Numahttp://en.wikipedia.org/wiki/Origamihttp://en.wikipedia.org/wiki/Idol_serieshttp://en.wikipedia.org/wiki/YouTubehttp://en.wikipedia.org/wiki/Orkuthttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/MySpacehttp://en.wikipedia.org/wiki/FIFA_World_Cuphttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/All-Blackshttp://en.wikipedia.org/wiki/Global_telecommunications_infrastructurehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Communication_satelliteshttp://en.wikipedia.org/wiki/Submarine_communications_cablehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Copyright_lawhttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/International_criminal_courthttp://en.wikipedia.org/wiki/International_Court_of_Justicehttp://en.wikipedia.org/wiki/Crime_importationhttp://en.wikipedia.org/wiki/Integrationhttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/Sweatshopshttp://en.wikipedia.org/wiki/Pok?monhttp://en.wikipedia.org/wiki/Sudokuhttp://en.wikipedia.org/wiki/Numa_Numahttp://en.wikipedia.org/wiki/Origamihttp://en.wikipedia.org/wiki/Idol_serieshttp://en.wikipedia.org/wiki/YouTubehttp://en.wikipedia.org/wiki/Orkuthttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/MySpacehttp://en.wikipedia.org/wiki/FIFA_World_Cuphttp://en.wikipedia.org/wiki/Olympic_Gameshttp://en.wikipedia.org/wiki/All-Blackshttp://en.wikipedia.org/wiki/Global_telecommunications_infrastructurehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Communication_satelliteshttp://en.wikipedia.org/wiki/Submarine_communications_cablehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Copyright_lawhttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/International_criminal_courthttp://en.wikipedia.org/wiki/International_Court_of_Justicehttp://en.wikipedia.org/wiki/Crime_importationhttp://en.wikipedia.org/wiki/Integrationhttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/International_economicshttp://en.wikipedia.org/wiki/Sweatshops
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    It can be said that globalization is the door that opens up an otherwiseresource poor country to the international market. Where a country or nationhas little material or physical product harvested or mined from it sown soilthere is seen the opportunity by huge corporations to take advantage, insome ways even exploit the export poverty of such a nation. Where themajority of the earliest occurrences of economic globalization are recordedas being the expansion of businesses and corporate growth, in many poorer nations globalization is actually the result of the exploitation of that state of

    poverty.

    One particularly disturbing practice is the use of Sweatshops bymanufacturers. According to Global Exchange a non-profit organization

    based in San Francisco, CA, these Sweat Shops are widely used by sportsshoe manufacturers and mentions one company in particular Nike . As a

    leading retailer of sports equipment and apparel Nike, which is an American based corporation, is maintaining huge profit margins by producing its products at the very extreme end of minimal cost. There are factories set upin the poorest of Asian countries where employees work for barely enoughto survive and even children are being put to work. Then as labor laws alter in those countries and stricter rules govern the manufacturing process thefactories are closed down and relocated to other nations, less likely to havesuch strict laws and enforcement.

    There are several agencies that have been set up worldwide specificallydesigned to focus on anti-sweatshop campaigns and education of such. TheDecent Working Conditions and Fair Competition Act is a legislation

    passed by the National Labor Committee in the USA. The legislation nowsuggests that companies are legally obligated to respect human and worker rights by prohibiting the import, sale, or export of sweatshop goods. Thereare very strict standards set out by the International Labor Organization andany violations shall be banned from the US market.

    Specifically, these core standards include no child labor , no forced labor ,

    freedom of association , right to organize and bargain collectively, as well asthe right to decent working conditions.

    Tiziana Terranova has stated that globalisation has brought a culture of "freelabour". In a digital sense, it is where the individuals (contributingcapital)exploits and eventually "exhausts the means through which labour can sustain itself". For example, in the area of digital media (animations,

    http://en.wikipedia.org/wiki/Sweatshopshttp://en.wikipedia.org/wiki/Global_Exchangehttp://en.wikipedia.org/wiki/Nikehttp://en.wikipedia.org/wiki/National_Labor_Committeehttp://en.wikipedia.org/wiki/International_Labor_Organizationhttp://en.wikipedia.org/wiki/Child_laborhttp://en.wikipedia.org/wiki/Forced_laborhttp://en.wikipedia.org/wiki/Freedom_of_associationhttp://en.wikipedia.org/w/index.php?title=Tiziana_Terranova&action=edit&redlink=1http://en.wikipedia.org/wiki/Sweatshopshttp://en.wikipedia.org/wiki/Global_Exchangehttp://en.wikipedia.org/wiki/Nikehttp://en.wikipedia.org/wiki/National_Labor_Committeehttp://en.wikipedia.org/wiki/International_Labor_Organizationhttp://en.wikipedia.org/wiki/Child_laborhttp://en.wikipedia.org/wiki/Forced_laborhttp://en.wikipedia.org/wiki/Freedom_of_associationhttp://en.wikipedia.org/w/index.php?title=Tiziana_Terranova&action=edit&redlink=1
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    hosting chat rooms, designing games), where it is often less glamourous thanit may sound. In the gaming industry, a Chinese Gold Market has beenestablished.

    PROBLEMS OF GLOBALISATION

    The current trade system has adopted a principle of minimuminterference, in the form of tariffs and subsidies, and maximumgrowth. It sees economic growth and increasing consumption as endsin themselves and pursues growth at all costs. The problem withuncontrolled growth is that it is depleting the natural capital, theenvironment on which the global economy is based, faster than it canbe replaced.

    There are major contradictions between the objectives of the WTO,IMF, World Bank and the types of projects that they fund. They pay lipservice to the problems of poverty, ethical development andenvironmental protection but do very little to fix them.

    The goals of the trade organisations, corporations and lobbyinggroups are commercialisation, privatisation and deregulation of theworld's domestic economies.

    ENVIRONMENTAL AGREEMENTS

    Our current trade system is oppressive, unfair and is destroying ourenvironment.

    Several of the more recent agreements brokered by the WTO werenotable for their exceptional bias towards big business and wealthy

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    countries - specifically, the Agreement on Agriculture (AOA) and theTrade Related Intellectual Property Rights (TRIPs) Agreement.

    Multilateral environment agreements that govern trade in the productsof biodiversity, protect endangered species or habitats, or control themovement of toxic waste around the globe could be undermined bytrade agreements. These agreements include the Montreal Protocol,the Convention on International Trade in Endangered Species(CITES), the Convention on Biological Diversity, and the BaselConvention on Trans-boundary Movement of Hazardous Waste.

    Another problem with the free market economic system is that it isover simplistic. Many of its supporters believe that economics worksaccording to laws of physics, biology or nature and if it is left alone,will eventually regulate itself for the benefit of all humanity. There isan almost religious faith in the theory of free trade extending back tothe 18th Century. Because free trade is seen as more efficient it isconsidered better generally. Massive destruction of human cultureand the environment is seen as just collateral damage to economistsdedicated to the idea of a free market.

    Those advocating the free market system claim that eventually thepoor in developing countries will benefit from deregulation. The theoryis known as 'trickle down effect', because over time the wealthgenerated by liberalisation is supposed to trickle down from the rich tothe poor. So far the world trade system has increased the wealth of asmall minority of people, mostly in developed countries but the poorhave become poorer.

    It is taken for granted that constant economic growth is desirableeven if we are depleting our resources faster than they can bereplenished.

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    STATISTICS

    World cross-border global transactions have grown from $3 trillion in1990 to $10 trillion in 2007 and are expected to increase to over $70trillion by 2025. About 84% of this was merchandise and 16% isservices. About 75% of the value of world merchandise trade is frommanufactured goods, mainly transport, machinery and electronicequipment. Minerals and agriculture, which form the main source ofincome for the developing world, make up 22% of merchandise trade.About 40% of international trade occurs through transnationalcorporations.

    Some transnational companies are so big that they have greatersales than the total sales of many developed countries. Thecombined sales of the world's largest 350 multinationals total onethird of the combined GNP's of all industrialised countries, andexceed the individual GNP's of all developing countries. The GDP ofthe poorest 48 nations (i.e. 1/4 of the world's countries) is less thanthe combined wealth of the world's 3 wealthiest individuals. Soextreme is this discrepancy in ownership that In 2004, approximately0.13% of the world's population controlled 25% of the world's assets.

    In 1960, 20% of the world's population living in the richest countrieswere 30 times richer than the poorest 20%. By 1997, they were 74times richer. Between 1975 and 1997, GDP increased about 50% inthe most developed countries and fell by about 15% in the least

    developed countries (United Nations Development Program Figures1999).

    After fifty years of free market economic or economic rationalism,more people in the world than ever are poor, hungry, sick or dyingand the environment is getting worse. While more people are getting

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    richer, more people are becoming poorer. The gap between rich andpoor is getting wider and the quality of life for all people is decreasing.

    TRANSPORT AND ENVIRONMENT

    The trade system promotes increasing consumption even when itinvolves the loss of natural habitats and biodiversity, the naturalcapital on which the global economy is based. More trade meansmore transport and this means more roads, noise and more airpollution. A rise in levels of global transport has also resulted inincreased transmission of alien species from one country to another,

    for example in the ballast of ships. The introduction of these speciesinto sensitive ecosystems results in disaster for some environments.

    One economic theory promoted by free market economists, thetheory of comparative advantage, is that nations should specialise inproducing that at which they are best. This runs against the viewsheld by most environmentalists that it is better to produce locallybecause it reduces transport costs.

    There are limits to the capacity of ecosystems to absorb pollutionboth in terms of the rate and the total of amount pollution, but thereare no defined limits for trade, industrialisation and growth.

    Growth driven economics has resulted in the production of timberfrom unsustainable sources and the loss of the world's tropicalforests. Marine fisheries have been over-exploited and fish stocks are

    in serious decline.

    Where national laws intended to protect the environment challengeWTO rules on trade, the result has nearly always been that WTOrules have had precedence over the nation's laws.

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    There is no place for the precautionary principle in WTO rules. WTOfree trade rules have been used to oblige Europe to import hormone-treated beef, and to prevent countries from choosing to import

    shrimps which are caught using special nets which do not trap and killturtles.

    LABELLING

    Over the past twenty years there has been a movement to give goodsand services that are environmentally and socially acceptable a labelto distinguish them from other goods. The WTO see such labelling as

    a barrier to trade and therefore illegal. Examples include organic foodor timber from sustainable sources, and products that have beenproduced by people who have been paid a fair wage.

    DEMOCRACY

    The WTO is not a democratic institution. It is dominated by a fewpowerful Western governments acting on behalf of the corporations.

    Influence at the WTO is bought with a donation of a few hundredthousand dollars to a leading political party. This 'donation' will givethe company access to key negotiators at a conference.

    The WTO is not transparent and is not accountable to anyone.

    As the corporations increase their control over the economy, societyand the environment, democracy is weakened.

    The WTO has a one-country one-vote structure but wealthycompanies and powerful countries wield most influence. The morepowerful groups exert leverage over governments in poorer countriesto conform and often determine the agenda of negotiations.

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    Access for the public to information about the activities of the WTO islimited. Even members of governments are unable to get answers toqueries about trade negotiations. Disputes are settled through the

    Appellate Body and are conducted in closed sessions. There is nopublic input permitted.

    The larger trading countries like the US and trading blocks like theEU, determine the agenda of negotiations and pursue self-interestsand the interests of their transnational corporations.

    BIAS

    Governments are obliged to inform the WTO of changes that aremade to its national laws that may relate to trade. Once trade rulesare in place, a government cannot change their national laws if theydirectly counter the trade rules.

    Disputes between members are mediated by the Dispute SettlementBody (DSB).

    The WTO have increased levels of poverty for the majority of theworld's peoples, facilitated a concentration of wealth in the hands of afew rich people, allowed growing inequality within and betweennations, and facilitated unsustainable patterns of production andconsumption.

    COMPETITION

    Currently there is the tendency for more power to be concentratedglobally in the hands of fewer businesses. Transnational corporationsare merging or acquiring smaller companies. Monopoly capitalism isnot good for consumers and the environment because it increasesauthoritarianism and decreases competition. Small business cannot

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    be expected to compete with large corporations because largecorporations are able to reduce costs. Large corporations can evendrive down prices and because their large size buffers them against

    losses, they can eventually force small companies out of business.

    SPECULATION

    The current trade system has promoted deregulation of the

    investment sector of the financial market. This has stimulatedincreasing movement of large amounts of short-term capital, whichhas resulted in increasing economic instability and insecurity indeveloping countries. Speculators have been able to withdraw theirinvestments at short notice and undermine economies, particularly incountries which have a relatively immature financial market. This hasprecipitated economic crises in some South East Asian countries and

    increased the number of people in poverty. In Malaysia in 1997, forexample, capital flowing out of the country resulted in the Malaysianstock market losing 40% of its value in six months. Furthermorederegulation has resulted in fluctuating commodity prices in globalmarkets, which has added to increasing economic insecurity.

    Sustainable development is not possible in a boom and slumpeconomic system fuelled by speculative investment.

    LABOUR LAWS

    The increase in the mobility of capital and companies globally hasresulted in companies moving to countries where labour laws areweakest and wages lowest.

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    THIRD WORLD FARMERS

    Many small-scale farmers have no choice but to work with poor soilsand in difficult climatic conditions. Free market principles do not allowfor compassion. Support for small-scale farmers is less likely withtrade liberalisation. Hard economic policies may force more ThirdWorld farmers to sell up and move off their land.

    Many developing countries that oppose trade agreements are forcedto accept them or risk being isolated in the global economy.

    Countries that are massively in debt to the World Bank have beenmore compliant in adopting trade liberalisation and many have beenobliged to increase exploitation of their natural resources and adoptedunpopular austerity measures, which have hit the poor hardest.Countries in debt have been manipulated into restructuring theireconomy towards producing goods for export markets. In theorygreater exports means people are able to afford more imports andconsumerism stimulates growth. When countries are forced to turn

    over most of their land to grow cash crops or expand miningoperations, the effects on the environment and local communities areusually negative. Producing exports does not necessarily lead todevelopment. World market prices for exports may be low for manyyears or wildly fluctuate and sometimes they collapse. Among fieldsof tobacco, coffee or cocoa the poor frequently go hungry throughlack of adequate nourishment.

    PANTETING

    Indigenous peoples in developing countries have accumulatedknowledge in areas such as plant breeding for hundreds or thousandsof years. Under the rules of free trade agreements transnational

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    companies can expropriate this knowledge and claim traditional plantvarieties or plant uses as their own.

    GENERAL PROBLEMS

    Over a quarter of the developing world live in poverty and millions ofpeople in the developed world live below the poverty line. Over onebillion people still live on less than one dollar a day. The current tradesystem has been unable to reduce poverty.

    PICT ORIAL ILL USTRA TION

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    DIMENTION S OF

    GL OB ALI SATION

    Specifically, globalization can be viewed as a four-dimensional construct basedon the premise that an enterprise can be more or less global along each of four major characteristics:

    (i) Globalisation of Market Presence: The first dimension-globalisation of market presence-refers to extent to which company targets customers in allmajor markets within its industry throughout the world. On the basis count the

    presences of the companies vary from low to high. For example, in 1933, NTTof Japan had no presence at all either in N.America OR IN Europe. Incomparison, IBM, Sun Microsystem and Cannon were the most globalisedfirms.

    N.America Europe Asia IBM 41 33 16

    Fujitsu 06 26 65HP 51 34 09NEC 06 04 88Compaq 45 38 05Canon 30 29 37

    Sun Microsystem 51 24 25NTT 00 00 100Microsoft 56 30 09

    Percentage regional distribution of IT sales for selected companies in 1993(Source: The Economic Times, December 26, 2003)

    (ii) Globalisation of Supply Chain: Internationalisation of supply chain refers tothe extent to which the company is accessing the most optimal locations for the

    performance of various activities in its supply chain. It may be possible for a

    firm to have a fairly local or regional market presence and yet have a highlyglobalised supply chain, or vice-versa. For example Toyota has a good supplychain. In 1995, Toyota produced about thirds of all its cars in Japan; theremaining one-third were produced in affiliates spread over 25 countries inAmerica, Europe and Asia.

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    (ii) Globalisation of Capital: This refers to the extent to which the company isaccessing optimal sources of capital on a worldwide basis. The Hong Kong

    based Internet Service Provider China com presence as well as supply chain,and yet have a highly globalised capital base. In 1999, China Coms market

    base and operations were centered primarily around Hong Kong and China.Yet in the same year the company got listed itself on the US based Nasdaq.

    (iv) Globalisation of Corporation Mindset: Last but most important dimensionis the globalization of corporate mindset. This dimension refers to the ability of the company to understand and integrate diversity across cultures and markets.General Electric Services is a good example of a firm with an increasinglyglobal mindset. The human capital of GE is highly globalised, it has strongworldwide corporate culture; and the composition of the leadership isincreasingly diverse in terms of nationalities.

    A true Global company is the one which scores high on all the four dimensionsdiscussed above.

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    DEVELOPMENT SUPPORT AND

    STRATEGIESGlobalisation is not a new phenomenon. Trade across the countries is as old as

    business itself. However ,the volume of international business and the number of players in it have increased dramatically over the last decade. Today everynation and an increasing number of companies buy and sell goods and servicesin the international market places. A number of development around the worldhas fuel this activity.

    (i) The emergence of N.America Free Trade Agreement (NAFTA) ,comprising United States, Canada and New Mexico, has created a huge NorthAmerican market. Movement of goods and services among these countries iseasy as all trade barriers have been removed.

    (ii) The European Union (EU) is now well on its way to creating marketthat may be described as United States of Europe. The group consist of 25nations. All these countries have not only removed trade barriers among them,

    but have also adopted a single currency, called the EURO.

    (iii) The most recent change of the General Agreement of Tariffs and Trade (GATT) are stimulating increased world trade. Under thisagreement, tariffs will be reduced world wide by 38%, and in some cases,eliminated completely. GATT itself has been relaced by World TradeOrganisation (WTO), which came into existence on January 1, 1995.

    (iv) There is also recent economic progress among lessdeveloped economies . A good example is India, which for years, has had alove-hate relationship with multinational business. The Government of Indiahas been known for its slow-moving bureaucracy and this has been a major stumbling block in attracting foreign capital. Over the last few years, however,there has been a dramatic turn-around in government policy, nad a growingnumber of multinationals recently have been attracted due to the current Indiangovernments willingness to reduce redtapism.

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    MENIFESTATION OF

    GLOBALISATION

    Globalisation manifests itself in many ways. The more important of them are:

    1. Configuring anywhere in the worldAn MNC can locate its different operations in different countries on the basis of raw material availability, consumer markets and low-cost labour. World classcompanies have located their manufacturing operations in low labour-costcountries as their own based home based labour aither too expensive or militant.

    2. Interlinked and independent economiesIn terms of economic-welfare, globalization refers to the unique economicallyinterdependent international environment. Each countrys prosperity isinterlinked with the rest of the world. No nation can any longer hope to lead anexistence of solitude and isolation in which only domestic industries, no matter how inefficient, plod on merily.

    3. Effect related industries and ancillariesGlobalization may also render many companies to go sick. Large scalerestructuring may result in closure or hiving-off oa a part or whole of their operations. Many ancillaries units will laso be rendered sick in the process.

    4. Increasing trend towards privatizationGovernments everywhere are, to a certain extent, withdrawing from owning andrunning business enterprises. Private entrepreneurs are given greater access andfreedom to run business units. The rolr of the government is reduced to the

    provider of infrastructure for private business to prosper.

    5. Infrastructural resources and inputs at international pricesInfrastructural inputs must be ensured at competitive prices, if the companies

    were to compete globally. The advantages of cheap labour (and other inputs)evaporate in the face of continous inflation and high infrastructural costs.

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    GAINS OF GLOBALISATION

    Globalization wil help unleash the potential energies of creative andenterprising people. Unfettered positive creativity and enterprise should be thehallmark of a progressive people and a progressive system. Let us see as to howthis process will benefit one and all in the world.

    1. Continous Improvement in economic efficiency:In a flobalised economy, the pattern of production will be determined by themarket mechanism. Allocation of resources will be determined by consumerschoices and preferences. Rewards to the productive factors will be determined

    by this contribution to the total product. Thus maximization of productiveefficiency, distributive efficiency and allcative efficiency will be possible under the conditions of a free market.

    2. Continous improvement in factor payment:Countries will be specialising in those products where they have thecompetitive advantage over others. Among other things, the competitiveadvantage of nation is determined by other factor endowments. Thus capital

    abundant countries will specialize in the production of capital goods whereaslabour abundant countries will involve in the production of labour intensivegoods and services.

    3. Benefits from human capital flows :The movements of enriched human capital flows from the developing countriesto the developed countries imparts demographic stability to the developednations whose populations would otherwise be on the decline.Further,thedeveloped countries can enjoy the economies flowing from avaibility of enriched immigrant human capital . The cost of human capital formation in thedeveloped countries is relatively much higher than the developing countries.

    4. Borderless Financial capital and Wider Investment Opportunities:Globalisation or opening up of the economy leads unrestricted flow of factorsacross the national borders. Amongst the factors,financial flows are of greatimportance particularly in the context of developing countries. Financial flows

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    are of two types, namely foreign direct investment and foreign portfolioinvestment.

    BIBLIOGRAPHY

    Google.com Economic Times December 2003 Text book of BBM of Business Environment by K. Aswathappa and

    G.Sudarshan Reddy (II Year) Managerial Economics-II by Krishnan Nandela of BMS (III Semister) Business Magazine of December 2005 India Today of june 2007