Impact of Globalization on Indian Economy

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1.0 Globalization and Financial Liberalization "The advent of globalization and financial liberalization has major implications for the banking systems outside the developed world. Identify these implications and critically consider what strategies such banks might adopt to meet the challenges posed by ever evolving global market in trade and finance. Over the past decade, we have witnessed a drastic increase in the number of international trade between countries. These increase showed that the world now has become increasingly interconnected between each other. This is the result of globalization, where businesses or organization met internationally and operating on international scale.

Globalization started some several centuries ago but has become an important strategic element of many businesses in the modern economy (Lechner 2009). This is due to the huge competitive advantages, which it offers to an organization. Globalization also allows expanding the market niche, reducing costs by moving the operations to places with low overheads, and expanding the business access to skills (Scholte 2005). Many businesses are taking advantage of technologies such as the internet, video-conferencing, and fast transport, to expand their operations internationally. Globalization has changed the world economies, hence the global politics, which are anchored upon the economic muscles of the different nations.

The political economy in international trade make economies grow and it impacts what a country is able or not able to do in the international trade environment. Increasing market size, having an insurance motive, protectionism, and increasing bargaining power will help both economies to grow for years to come.

Introduction Economic globalization phenomenon has gradually come into people’s eyesight since the 1980s. According to Gao Shangquan’s article (2000), the economic globalization means that the world economy has become interdependent, cross-border trade and the spread of goods, services, international flows of capital and technology become more efficient. The progress of science and technology is the main driving force of economic globalization. It is undeniable that globalization can help the world economy becomes more prosperous. The promoters of globalization think it has brought more opportunities and development for the world; the advantages of the globalization are far outweighing the disadvantages.

b) Dynamic Work Environment: Globalization has bought a revolution in world economy. Globalization has increased the rates of mergers and acquisition. The increase in competition between the multinational corporations across the globe has increased drastically. Work environment has changed a lot post globalization, c) Information Technology: Improvement in information technology is due to the impact of globalization. The one which has the best potential to change the shape of international management is the advancement of technology.

Introduction: Due to increasing trade and cultural exchange, the world is getting more interconnected day by day. This process is widely known as Globalization. The effects of Globalization in business have reflected so rapidly that new concepts and related theories have been developed and are specifically known as ‘Global Business Management’. The relatively new business concepts adopted in regard to the globalization are generally a blend of strategic management and the universal business which are intended to be developed worldwide as effective b¬usiness methods for international business entities. The recently developed business related studies usually scrutinizes general business conditions which came up with the conclusion that the

Balakrishnan, C. (2004),’ Impact of Globalization on Developing Countries and India: The 2004 Moffatt Proze in Economics.’ Available at: http://economics.about.com/od/globalizationtrade/l/aaglobalization.htm. Accessed: 2nd December, 2011.

This and other changes such as cross member ship agreements and new parallel links between exchanges, have, and still are creating and manipulating the international markets. The essay will then explain why these changes have occurred, looking in depth at technology advances, technology and scale of economies, technology and competition, cross border investment, globalisation and new role taken by finical intermediaries, providing specific examples of these changes seen with current examples. The essay will conclude with a brief summary of what the larger markets are doing to combat this changes. There have been two major structural changes in markets over the past decades. The first of which is the mergers between equity and derivative exchanges within countries and secondly the new types of links, created by technological advances between exchanges.

Globalization as generally understood involves the increasing interaction of the world's peoples through their national economic systems. Of necessity, these economic systems are reasonably compatible and, in at least some important respects, market oriented. During the past half-century, barriers to trade and to financial flows have generally come down, resulting in a significant broadening of world markets. Expanding markets, in turn, have enhanced competition and nurtured what Joseph Schumpeter called "creative destruction," the continuous scrapping of old technologies to make way for the new. Standards of living rise because the depreciation and other cash flows of industries employing older, increasingly obsolescent, technologies are marshaled, along with new savings, to finance the production of capital assets that almost always embody cutting-edge technologies.