Impacts Of Globalisation

• Industrial - emergence of worldwide production markets and broader access to a

range of foreign products for consumers and companies. Particularly movement
of material and goods between and within national boundaries. International trade
in manufactured goods increased more than 100 times (from $95 billion to $12
trillion) in the 50 years since 1955.[14] China's trade with Africa rose sevenfold
during 2000-07 alone.[15][16]
• Financial - emergence of worldwide financial markets and better access to
external financing for borrowers. By the early part of the 21st century more than
$1.5 trillion in national currencies were traded daily to support the expanded
levels of trade and investment.[17] As these worldwide structures grew more
quickly than any transnational regulatory regime, the instability of the global
financial infrastructure dramatically increased, as evidenced by the Financial
crisis of 2007–2010.[18]

• Economic - realization of a global common market, based on the freedom of

exchange of goods and capital.[22] The interconnectedness of these markets,
however, meant that an economic collapse in one area could impact other areas.
[citation needed]
With globalization, companies can produce goods and services in the
lowest cost location. This may cause jobs to be moved to locations that have the
lowest wages, least worker protection and lowest health benefits. For Industrial
activities this may cause production to move to areas with the least pollution
regulations or worker safety regulations.

• Job Market- competition in a global job market. In the past, the economic fate of
workers was tied to the fate of national economies. With the advent of the
information age and improvements in communication, this is no longer the case.
Because workers compete in a global market, wages are less dependent on the
success or failure of individual economies. This has had a major effect on wages
and income distribution.[25]
• Political - some use "globalization" to mean the creation of a world government
which regulates the relationships among governments and guarantees the rights
arising from social and economic globalization.[26] Politically, the United States
has enjoyed a position of power among the world powers, in part because of its
strong and wealthy economy. With the influence of globalization and with the
help of the United States’ own economy, the People's Republic of China has
experienced some tremendous growth within the past decade. If China continues
to grow at the rate projected by the trends, then it is very likely that in the next
twenty years, there will be a major reallocation of power among the world
leaders. China will have enough wealth, industry, and technology to rival the
United States for the position of leading world power.[27]

• Informational - increase in information flows between geographically remote

locations. Arguably this is a technological change with the advent of fibre optic
communications, satellites, and increased availability of telephone and Internet.
• Language - the most spoken first language is Mandarin (845 million speakers)
followed by Spanish (329 million speakers) and English (328 million speakers).[29]
However the most popular second language is undoubtedly English, the "lingua
franca" of globalization:
o About 35% of the world's mail, telexes, and cables are in English.
o Approximately 40% of the world's radio programs are in English.
o English is the dominant language on the Internet.[30]
• Competition - Survival in the new global business market calls for improved
productivity and increased competition. Due to the market becoming worldwide,
companies in various industries have to upgrade their products and use
technology skilfully in order to face increased competition.[31]
• Ecological - the advent of global environmental challenges that might be solved
with international cooperation, such as climate change, cross-boundary water and
air pollution, over-fishing of the ocean, and the spread of invasive species. Since
many factories are built in developing countries with less environmental
regulation, globalism and free trade may increase pollution and impact on
precious fresh water resources(Hoekstra and Chapagain 2008).[32] On the other
hand, economic development historically required a "dirty" industrial stage, and it
is argued that developing countries should not, via regulation, be prohibited from
increasing their standard of living.

• Cultural - growth of cross-cultural contacts; advent of new categories of

consciousness and identities which embodies cultural diffusion, the desire to
increase one's standard of living and enjoy foreign products and ideas, adopt new
technology and practices, and participate in a "world culture".[34] Some bemoan
the resulting consumerism and loss of languages. Also see Transformation of
culture.
o Spreading of multiculturalism, and better individual access to cultural
diversity (e.g. through the export of Hollywood). Some consider such
"imported" culture a danger, since it may supplant the local culture,
causing reduction in diversity or even assimilation. Others consider
multiculturalism to promote peace and understanding between people. A
third position that gained popularity is the notion that multiculturalism to a
new form of monoculture in which no distinctions exist and everyone
shifts between various lifestyles in terms of music, cloth and other aspects
once more firmly attached to a single culture. Thus not mere cultural
assimilation as mentioned above but the obliteration of culture as we know
it today.[35][36] In reality, as it happens in countries like the United
Kingdom, Canada, Australia or New Zealand, people who always lived in
their native countries maintain their cultures without feeling forced by any
reason to accept another and are proud of it even when they're acceptive of
immigrants, while people who are newly arrived simply keep their own
culture or part of it despite some minimum amount of assimilation,
although aspects of their culture often become a curiosity and a daily
aspect of the lives of the people of the welcoming countries.
 o Greater international travel and tourism. WHO estimates that up to
500,000 people are on planes at any one time.[citation needed][37] In 2008, there
were over 922 million international tourist arrivals, with a growth of 1.9%
as compared to 2007.[38]
o Greater immigration,[39] including illegal immigration.[40] The IOM
estimates there are more than 200 million migrants around the world
today.[41] Newly available data show that remittance flows to developing
countries reached $328 billion in 2008.[42]
o Spread of local consumer products (e.g., food) to other countries (often
adapted to their culture).
o Worldwide fads and pop culture such as Pokémon, Sudoku, Numa Numa,
Origami, Idol series, YouTube, Orkut, Facebook, and MySpace;
accessible only to those who have Internet or Television, leaving out a
substantial portion of the Earth's population.

o Worldwide sporting events such as FIFA World Cup and the Olympic
Games.
o Incorporation of multinational corporations into new media. As the
sponsors of the All-Blacks rugby team, Adidas had created a parallel
website with a downloadable interactive rugby game for its fans to play
and compete.[43]
• Social - development of the system of non-governmental organisations as main
agents of global public policy, including humanitarian aid and developmental
efforts.[44]
• Technical
o Development of a Global Information System, global telecommunications
infrastructure and greater transborder data flow, using such technologies
as the Internet, communication satellites, submarine fiber optic cable, and
wireless telephones
o Increase in the number of standards applied globally; e.g., copyright laws,
patents and world trade agreements.
• Legal/Ethical
o The creation of the international criminal court and international justice
movements.
o Crime importation and raising awareness of global crime-fighting efforts
and cooperation.
o The emergence of Global administrative law.
• Religious
o The spread and increased interrelations of various religious groups, ideas,
and practices and their ideas of the meanings and values of particular
spaces.[45]

The negative effects of globalization

Opponents of globalization point out to its negative effects. Some of them are listed below.
 • Developed nations have outsourced manufacturing and
white collar jobs. That means less jobs for their people. This
has happened because manufacturing work is outsourced to
developing nations like China where the cost of
manufacturing goods and wages are lower. Programmers,
editors, scientists and accountants have lost their jobs due to
outsourcing to cheaper locations like India.
• Globalization has led to exploitation of labor. Prisoners
and child workers are used to work in inhumane conditions.
Safety standards are ignored to produce cheap goods.
• Job insecurity. Earlier people had stable, permanent
jobs. Now people live in constant dread of losing their jobs to
competition. Increased job competition has led to reduction in
wages and consequently lower standards of living.
• Terrorists have access to sophisticated weapons
enhancing their ability to inflict damage. Terrorists use the
Internet for communicating among themselves.
• Companies have set up industries causing pollution in
countries with poor regulation of pollution.
• Fast food chains like McDonalds and KFC are spreading
in the developing world. People are consuming more junk
food from these joints which has an adverse impact on their
health.
• The benefits of globalization is not universal. The rich
are getting richer and the poor are becoming poorer.
• Bad apects of foreign cultures are affecting the local
cultures through TV and the Internet.
• Enemy nations can spread propaganda through the
Internet.
• Deadly diseases like HIV/AIDS are being spread by
travellers to the remotest corners of the globe.
• Local industries are being taken over by foreign
multinationals.
• The increase in prices has reduced the governments
ability to sustain social welfare schemes in developed
countries.
• There is increase in human trafficking.
• Multinatonal Companies and corporations which were
previously restricted to commercial activities are increasingly
influencing political decisions.

The positive aspect of globalization

Globalization has a positive side as well. Supporters of globalization argue that it is good and
beneficial. Some of their arguments are listed below.

• Globalization has created the concept of outsourcing.

Work such as software development, customer support,
marketing, accounting and insurance is outsourced to
developing countries like India. So the company that
outsourced the work enjoys the benefit of lower costs
because the wages in developing countries is far lower than
that of developed countries. The workers in the developing
 countries get employment. Developing countries get access
to the latest technology.
• Increased competition forces companies to lower prices.
This benefits the end consumers.
• Increased media coverage draws the attention of the
world to human right violations. This leads to improvement in
human rights.

Negative Impact of Globalisation on Indian Economy

The so-called negative effects of globalization on Indian industry and economy have
been:
1. Rise in demand for labor and the rise in wage rates leading to some increase in costs.
2. Weakening power of the trade unions over labor in emerging industries and growth
sectors like IT, entertainment, internet and mobile services, airlines, banking, insurance,
banking services.
3. Too much competition in the market leading to continuous pressure on raising
productivity, enhancing consumer service, improving product quality, in order to survive.
4.Voluntary retirement for many public sector units.
5. Too many sales person chasing customers.
6. Too many cars on the road and traffic congestion.
7. Growth of consumerism.
8. Instability in profits due to too much choice among customers.
9. Shortage power and infrstructure affecting industrial expansion.
10. Closure of inefficient units supplying costly and shoddy products and loss of jobs.
11. Two years of large increase in textile industry jobs followed by large loss of jobs due
to Rupee appreciation making Indian industry uncompetitive.
12. Problems of dealing with uncertainty in the international market in terms of demand,
supply and prices.,
You can generate many such ideas to please the teachers. But the fact is there are hardly
any real negative effect of globalisation compared with the pre-globalisation period.
Notwithstanding the low level of globalization of Indian economy, the impact of
globalisation has been highly positive in all most all spheres of economic and social life
and virtually no negative effect. It is only because of opening uo of the hitherto closed,
govt.-oppressed and controlled economy to the process of globalisation that has helped
Indian economy to grow rapidly:in the last 10-12 years, India's economic growth has
been high, exports have boomed, incidence of poverty has been reduced, employment has
surged, begging by India for economic aid has stopped, long-term inflation rate has gone
down, scarcity of goods have disappeared, the quality of products available have
improved substantially and overall India has become progressively vibrant and
internationally competititive. Indian companies are setting up companies abroad, India
has better technological development for the benefit of the common man ( mobiles, road
transport, cheap clothes, etc - only because of globalisation.
Effect of globalisation on Indian industry has been very positive, though some industrial
firms with the baggage of high cost, inefficient plants and processes inherited from the
past because of closed economy's government dictated industrial policies and priorities
had to face serious problems in the beginning. But soon most of the industries have
become more and more efficient, customer focussed and improved their international
competetiveness in terma of costs, prices, product quality and variety. Industrial growth
has been very high and strong during the past decade because of globalisation. Exports
have increased tremendously. Induan industries are also expanding abroad. Foreign
companies have substantially increased their investments in Indian industries. Wages of
industrial labour has increased substantially as they have become very productive. Lock
out and strikes have declined to insignificantly low levels because industrial labor is
happy. Those who cannot be efficient and past their prime age tio retrain themselves in
modern methods and processes have been retired with very attractive voluntary
retirement schemes. The trade unions are finding it difficult to influence industrial
workers into agitation because labor has started benefiting from the positive fallout of
globalisation on the prosperity and growth of the industrial sector. Talented and merited
labor is commanding premium compensation in the labor market. Several new type of
industries have also come up. Small scale industries of the past has fast grown into
medium scale companies. Incidence of industrial sickness has gone done drastically