Globalisation is the process of inter grating the economy of the country with world economy. It is a movement towards greater interaction. Integration and interdependence among people and organisation across borders. The strongest manifestation of Globalisation has been the increasing economic integration among the countries in trade and investment.
An important attribute of globalization is the increasing degree of openness, which has three dimensions, ie., international trade, international investment, and international finance. It involves creation of networks and activities transcending economic, social and geographical boundaries.
The Economy of India had undergone significant policy shifts at the beginning of the 1990s. This new model of economic reforms is commonly known as the liberalization, privatization and globalisation(LPG) model.
The chain of reforms that took place with regard to business, manufacturing and financial industries targeted at strengthening the economy of the country to a more proficient level. These economic reforms had influenced the overall economic growth of the country in a significant manner.
In brief, the salient points of Globalisation are:
1. Efficiency.
2. Transfer of technology
3. Concept of a global village
4. Mobility of labour force
5. Global competition resulting in better performance
6. Outsourcing and
7. Optimum utilization of human resources.
The political implications of globalisation are as follows.
1. Power subjugation: The effects of globalisation brought lots of changes in the world economy. For small countries it is inevitable to accept the economic decisions of strong countries. Hence it affects the soverignty of a country in totality.
2. Affects Sovereignty: As a result of globalisation in the fields of economy, trade, transportation, etc., the sovereign countries are bound by decisions of strong countries. Hence it affects the sovereignty of a country totally.
3. Cultural Invasion: Culture is a complex whole and exclusive to each country. The influence of globalisation in the name of cultural exchange not only invades but also degenerates the youth who are the architects of the future.
4. Enslavement of Lifestyle: Globalisation has largely affected the younger generation. Food habits, general behavior, mutual relationships, respect to elders,human values and ultimately the whole generation has become slave in the clutches of globalisation.
5. Elimination of subsidies: The major impact of globalisation is the curtailment of subsidies to all sectors including agriculture in a phased manner. The worst-hit are the peasants who are the backbone of the country.
6. Political Instability: The impact of globalisation mainly is economic depression, boom or even recession which directly affects the political stability of a country. Hence development comes to a standstill.
Thus globalisation as a process of integrating the economy of the country with world economy has gone a long way.
