Globalization
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Transcript of Globalization
Group 10
What is Globalization?
Stephen Gill defines globalisation as the reduction of transaction cost of transborder movements of capital and goods thus of factors of production and goods.
CHARACTERISTICS
Growing worldwide interconnection
Rapid, Discontinuous change
Increased number and Diversity of participant
Growing complexity
Causes of globalization
Globalization
Improvement of transport.
Development of communication
Rise of transnational corporations
Establishment of international organizations
Emergence of global problems
Economic Cultural
Division of production process
Flow of commodities
Flow of capital
Flow of communities
Flow of people
Globalization
GLOBALIZATION OF CULTURE
GLOBALIZATION OF POLITICAL ENVIRONMENT
GLOBALIZATION OF ECONOMICS
GLOBALIZATION OF TECHNNOLOGIES
GLOBALISATION OF AGRICULTURE
ESSENTIAL CONDITION FOR GLOBALIZATION
Business Freedom
Facilities
Government Support
Resources
Competitiveness
Key Public Policies Of RBI
1. The government is gradual rebalancing between public and private ownership. Higher Market Orientation is key
2. Significant liberalization of external trade
5 Privatization of power, airports and seaports which has significant employment potential
6 Improvement in both productivity and output in the agriculture
7 Improvements in institutional infrastructure in matters relating to administrative, judicial and
other systems of governance are important.
Key Public Policies Of RBI
Indian Economy
Scrapping of the industrial licensing regime
Reduction in the number of areas reserved for the public sector,
Start of the privatisation programme
reduction in tariff rates and
Change over to market determined exchange rates.
• The Indian tariff rates reduced a weighted average of 72.5% in 1991-92 to 24.6 in 1996-97 .
• Tariff rates went up slowly in the late nineties it touched 35.1%
• Peak tariff rates reduced to the minimum with a rate of 20%
• Most non-tariff barriers have been dismantled by March 2002,
Indian Economy
Export and ImportIndia’s Export $ 32.5 bn before 1991 and In 2005 $129.2 bn Forex reserves
Agriculture exports account for about 13 to 18% of total annual export of the country.
In 2000-01 Agricultural products valued at more than US $ 6million
Marine products in recent years is contributing for over one fifth of the total agricultural exports.
Cereals, oil seeds, tea and coffee nearly 5 to 10% of the countries total exports.
India’s position in the global economy has improved from the 8th position in 1991 to 4th place in 2001 (PPP basis)
GDP- 5.6% in 1990-91 to a peak level of 7.78% in 1996-97.
Growth rate now at around 6.5%, expected to go up to 7% India is now the fastest growing just after China.
OBSTACLE Poor Infrastructure
High Cost
Government Policy & Procedures
Resistance to Change
Poor quality image
Supply problem
Small Size
Limited R&D and marketing Research
Growing competition
Trade Barriers
The Opportunity
India has ample opportunities to develop its financial system further.The current round of reforms, which allow pension funds to invest more in equities, will help spur market growth, as will the continued privatization of state-owned enterprises.
Opening more parts of the economy to investment from foreign corporations and from expatriates
India has made remarkable economic progress since opening its economy in 1991. To continue that growth, it must now focus on developing its financial system
THANK YOU