Globalisation 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
Globalisation and free trade coincided with the process of
structural reforms and economic liberalisation.
There are six distinct
economic processes underlying what is commonly called the globalisation 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 globalised 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 globalisation came in to
fashion after 1990 when the development in the field of information technology
made interaction across boundaries easy. The world globalisation 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 globalisation describes the
political economic and cultural atmosphere of today.
***
[1] Ahluwalia,
Montek Singh, “Prices for Development in a globalised world” in Liberalisation and Globalisation in Indian Economy.
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