IBS B
The modern world is seen as the world without
geographical boundaries and any kind of barriers.
Globalisation has been the major force behind this,
representing the integration of the world economy and
exchanging the ideas, products, technologies etc.
Globalisation is the process of international integration
arising from the interchange of world views, products,
ideas, and other aspects of culture.
Globalisation means rapid increase in the share of
economic activities taking place across national
borders.
Globe – a model of earth, world without boundaries.
G means opening of prospects to border outlook,
interconnected, interdependent world with free transfer
of goods and services across nations
Technological: IT, Biomedical, green, robotics
Population: growth, aging, youth, women, labor, migration
Cultural: ideological, educational, pop culture, civilization
Health: Pandemics, AIDS, malaria
Resources: Water, food and agricultural, energy and fuel,
minerals
Terrorism:
Crime: organized crime, piracy, drug trafficking
Military/ security: alliances, nuclear proliferation, rising
powers
Environmental: global warming, deforestation, bio-diversity
Economic - Countries that trade with many others and
have few trade barriers are economically globalised.
◦ Commercial, industrial, communications, services
Social - A measure of how easily information and ideas
pass between people in their own country and between
different countries (includes access to internet and
social media networks).
Political - The amount of political co-operation between
the countries.
◦ OECD, EU, ASEAN
History of globalization
1492 – 1800
1800 – 2000
2000 - present
Trade and transaction
Capital and investment movements
Migration and movement of people
Dissemination of knowledge
Pros Cons
Rapid growth of business. Disparity in the society
Opportunity to go global. Ethical responsibility of
Introduction of various new business has been diminished.
technology. Price hike of every daily usable
Rise in access of technology in commodities.
rural area. The local business has
perished
New technology in the High growth but problem of
agriculture
unemployment.
Literate farmers Affected the agriculture sector
Rise in the literacy rate and Takeover of national firms
quality of life Brings instability
Increased productivity Impact on traditional
High standards of living industries
Increase flow of foreign capital Affects small industries
Increased competition
Widens disparity
Cultural impact
Increase in the foreign trade
Induce domestic
Indian economy adopted the policy of restriction after the
independence. But in 1991 due to the economic crises the
government of India decided to open its market for the
foreign investments. The new economic policies adopted
had impact on every sector of the Indian economy.
Major policy changes
Licence abolishing
Dilution of MRTP act
Foreign investment encouraged
Fiscal reforms
External sector reforms
Outward looking policy
Public sector reforms
