Globalisation-Pros & Cons

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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!