Globalization is the process of interaction and
international integration among people countries and governments of various
countries. Globalization is the trend toward greater economic, cultural,
political, and technological interdependence among national institutions and
economies. Globalization is a trend
characterized by denationalization in which people cooperate for their well-being
and completely free from government control (national boundaries becoming less
relevant). It is different from internationalization in which much importance
is given to national boundaries although the purpose of both is the well-being
of nation and people (entities cooperating across national boundaries).
In India the move towards
Globalization and free trade coincided with the process of structural reforms
and economic liberalization. There are
six distinct economic processes underlying what is commonly called the globalization
of the world economy[1].
These are: (i) the expansion of international trade in goods and services; (ii)
freer flow of technology, (iii) expansion in foreign direct investment, (iv)
freer flow of other capital flows, (v) freer movement of persons across
national boundaries, and (vi) the development of international institutional of
governance suited to the globalized world.
None of these processes is entirely new. After
Second World War, these activities were in place in the name of international
economic integration. The world globalization came in to fashion after 1990
when the development in the field of information technology made interaction
across boundaries easy. The world globalization is so dramatic label that every
one identifies modern period from this label. Just as the Great Depression, the
Cold War, the space Age the globalization describes the political economic and
cultural atmosphere of today.
[1] Ahluwalia,
Montek Singh, “Prices for Development in a globalized world” in Liberalization and Globalization in Indian Economy, Gupta , K.R. (Ed) 2008,
Atlantic publishers and Distributors (p) Ltd., New Delhi.
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