Wednesday, November 30, 2016

Define globalization. How does denationalization differ from internationalization?

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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